FG to Establish Natural Gas Park at Ajaokuta Steel Complex

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The Federal Government has promised to establish a Compressed Natural Gas park at the Ajaokuta Steel Company in Kogi State.

The Minister of Steel Development, Shuaibu Audu, disclosed this in a statement by his Special Assistant on Media, Lizzy Okoji, on Monday in Abuja.

The CNG is mainly composed of methane and primarily used as a substitute fuel for powering vehicles.

It is compressed to less than one per cent of the volume it occupies at standard atmospheric pressure.

President Bola Tinubu approved the establishment of the Presidential CNG Initiative (Pi-CNG) on Aug.18, 2023, as part of his palliative intervention aimed at cushioning the hardship faced by Nigerians due to the removal of fuel subsidy.

The initiative aims to revolutionise transportation by deploying over 11,500 new CNG-enabled vehicles and providing 55,000 conversion kits for existing PMS-dependent vehicles.

It is also dedicated to reducing reliance on fossil fuel and actively contributing to cleaner and healthier environment in Nigeria through the use of CNG-powered vehicles.

The minister said that the initiative was part of the President’s ‘Renewed Hope Agenda’ to address the plight of Nigerians.

“This goes to demonstrate the commitments of the President to easing the plights of citizens as a result of the removal of fuel subsidy. We are also joining the rest of the world in transiting to green, sustainable, and cost-effective sources of energy.

“As stakeholders in P-CNGi, the Ministry of Steel Development also has plans for a proposed CNG park within the territories of the Ajaokuta Steel Company Ltd.

“The CNG Park to be located in ASCL will benefit from existing infrastructure, like the natural gas line from Warri to Ajaokuta, the Metallurgical Training Centre. There are also the engineering workshops and the 10,000 housing estates in Ajaokuta environs, among others,” he said.

Mr Audu also commended the Nigerian Army for inaugurating CNG vehicles for its operations under the Auto Switch Kick-off Pilot Programme, powered by the P-CNGi.

He urged other organisations to adopt the technology for its cost-effectiveness and for promoting a sustainable, healthy environment.

The minister said in February that the ministry would launch a three-year road map that entails the reviving of 44 different production units of the steel company in piecemeal through its concession to investors.


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