NIPCO Gas Limited has unveiled plans to construct 20 additional compressed natural gas (CNG) stations across the country as part of efforts to strengthen gas utilisation and align with the Federal Government’s clean energy transition drive.
The Managing Director, Nagendra Verma, disclosed the expansion during a media briefing in Lagos, outlining the company’s strategy to scale up gas mobility infrastructure nationwide.
“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 stated.
He explained that the rollout includes the establishment of key compression hubs to support efficient distribution. According to him, CNG mother stations in Lekki and Ore are nearing completion and will function as primary compression and dispatch centres.
“In addition, CNG mother stations located at Lekki and Ore are at advanced stages of completion. These facilities will serve as primary compression and dispatch hubs, enabling the efficient supply of CNG to daughter stations and industrial customers across various regions.
“The nationwide expansion is strategically designed to ensure broader coverage along key transport corridors and high-traffic urban centres, thereby improving accessibility and affordability of CNG for commercial vehicles, fleet operators, mass transit systems, and private motorists,” he said.
Verma noted that the company is adopting a mother-daughter distribution model to extend gas supply to locations 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 added.
He emphasised that the projects are being executed in compliance with regulatory and safety standards, adding that the initiative is expected to create jobs, lower transport fuel costs and reduce carbon emissions.
“This expansion is expected to generate significant employment opportunities, reduce transportation fuel costs, stimulate enterprises within the mobility value chain, lower carbon emissions, and contribute to improved air quality,” Verma highlighted.
Beyond the CNG station expansion, NIPCO Gas is also strengthening pipeline infrastructure in the South-West. The company, in partnership with NNPC Gas Marketing Limited and under a mandate from Nigerian National Petroleum Company Limited, is constructing an 18-inch, 80-kilometre natural gas pipeline from Sagamu to Ibadan.
Verma said the pipeline project is expected to be completed by June or July 2026 and will enhance gas supply to industrial and commercial users in Ogun and Oyo states, as well as neighbouring areas.
“This critical infrastructure will enhance manufacturing competitiveness, reduce production costs for industries currently dependent on alternative fuels, and stimulate regional economic growth,” he asserted.
The company is also developing additional gas distribution infrastructure from Sagamu to Abeokuta, further deepening gas penetration across the South-West region.
