NIPCO CNG stations expansion adds 20 new facilities across Nigeria to boost gas mobility, support clean energy goals and reduce fuel costs

Managing Director of NIPCO Gas Limited, Nagendra Verma, has announced the construction of 20 additional compressed natural gas stations across Nigeria, a move aimed at deepening gas utilisation and supporting the Federal Government’s clean energy transition.

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Verma disclosed the development during a media engagement at the company’s Lagos office, where the firm outlined expansion initiatives designed to strengthen gas-powered mobility infrastructure nationwide.

According to him, the rollout of the new NIPCO CNG stations forms part of a joint venture between NIPCO Gas Limited and NNPC Gas Marketing Limited to accelerate adoption of compressed natural gas as an alternative transport fuel.

“Aligned with the Federal Government’s clean energy and post-subsidy reform agenda, NIPCO Gas Limited, in a joint venture with NGML, is currently constructing 20 additional Compressed Natural Gas stations across Nigeria,” Verma said.

The expansion also includes the development of strategic compression hubs intended to improve nationwide distribution.

Verma explained that CNG mother stations in Lekki and Ore are at advanced stages of completion, and will serve as primary compression and dispatch centres supplying daughter stations and industrial consumers.

The company said the infrastructure network is being designed to improve access to gas-powered mobility along major transport corridors and densely populated urban centres.

Verma noted that the network-based model would allow gas supply to reach areas without direct pipeline connections.

“Through the mother-daughter network model, reliable gas supply will be extended to areas not directly connected to pipeline infrastructure,” he explained.

The project is expected to create employment opportunities while lowering transport fuel costs for commercial vehicles, mass transit operators, fleet managers and private motorists.

The initiative is also projected to cut carbon emissions and improve air quality in major cities.

Beyond the rollout of the NIPCO CNG stations, the company is expanding gas pipeline infrastructure in the South-West to support industrial energy demand.

Verma revealed that the firm, acting under a mandate from Nigerian National Petroleum Company Limited and in partnership with NNPC Gas Marketing Limited, is constructing an 18-inch, 80-kilometre natural gas pipeline from Sagamu to Ibadan.

The pipeline project is expected to be completed by June or July 2026 and will improve gas supply for industries and commercial consumers in Ogun and Oyo states.

“This critical infrastructure will enhance manufacturing competitiveness, reduce production costs for industries currently dependent on alternative fuels, and stimulate regional economic growth,” Verma said.

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In addition, the firm is developing gas distribution infrastructure linking Sagamu to Abeokuta in Ogun State as part of efforts to deepen gas penetration in the South-West and support Nigeria’s broader energy transition strategy.