FG Commissions Three Gas Facilities In Kano, Targets Lower Transport Costs

The Federal Government has commissioned three gas infrastructure facilities in Kano State as part of efforts to expand access to affordable alternative fuel, reduce transportation costs and promote the use of Compressed Natural Gas (CNG) across the country.

The facilities, developed by Rolling Energy Limited in partnership with the Midstream and Downstream Gas Infrastructure Fund (MDGIF), have a combined capacity to serve up to 2,500 cars and tricycles, as well as 200 trucks daily.

The projects comprise a Liquefied Natural Gas-to-Compressed Natural Gas (LCNG) distribution hub and retail station at Tamburawa, and an LCNG retail station at Hotoro.

Commissioning the facilities on Tuesday, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, described the projects as a demonstration of the Federal Government’s commitment to translating its gas policies into tangible infrastructure under the Renewed Hope Agenda.

Ekpo said the development marked a transition from policy formulation to infrastructure delivery, particularly in making Nigeria’s abundant gas resources accessible to households, businesses and the transportation sector.

He added that the government would continue to encourage private sector investment in gas infrastructure to ensure affordable and reliable energy supply.

Located in Dawakin Kudu Local Government Area, the Tamburawa facility has a capacity of 300,000 standard cubic metres daily and features LNG storage, regasification and CNG distribution facilities. It is also designed to supply other daughter stations across neighbouring areas.

The Hotoro facility, situated in Tarauni Local Government Area, has a daily capacity of 21,000 standard cubic metres.

Speaking at the event, the Executive Director of MDGIF, Oluwole Adama, said the projects formed part of an 18-facility partnership with Rolling Energy covering three states and the Federal Capital Territory.

Adama explained that the facilities would provide motorists and commercial transport operators with a cheaper alternative to petrol, noting that petrol currently sells for about N1,420 per litre in Kano, compared with approximately N600 for the equivalent energy from CNG.

He said a tricycle operator who spends N14,200 daily on 10 litres of petrol could reduce the expenditure to about N6,000 by switching to CNG, translating to daily savings of N8,200 and nearly N250,000 monthly.

According to him, the savings would improve the earnings of transport operators while potentially reducing the cost of moving agricultural produce, livestock and manufactured goods to markets.

Adama urged fleet owners, transport unions and business operators to take advantage of the facilities, while calling on Rolling Energy to maintain high safety standards and build public confidence in gas-powered transportation.

The Founder and Chief Executive Officer of Rolling Energy, Mubarak Danbatta, said the Tamburawa hub would serve as a strategic supply point for investors seeking to establish CNG stations in Kano, Jigawa, Zaria and neighbouring communities.

He explained that the facility would reduce the region’s dependence on gas supplies transported from Kogi State, thereby improving availability and encouraging further investment.

Danbatta also disclosed that the facilities had vehicle conversion workshops equipped with Greco CNG kits. The Tamburawa workshop can convert 20 vehicles daily, while the Hotoro facility has a capacity of six vehicles per day.

He said the company’s investment went beyond retail gas distribution, revealing plans to develop regasified liquefied natural gas (RLNG) gas-to-power facilities to support industrial operations.

Danbatta further announced that Kaduna and Borno states were next in the company’s expansion programme, with three facilities planned for each state. Jigawa, Katsina, Sokoto and Zamfara are also being considered.

The projects are expected to create employment opportunities in gas distribution, vehicle conversion, maintenance, safety and logistics, while improving access to alternative energy for commercial and industrial users.

The commissioning ceremony was attended by representatives of the Kano State Government, the Presidential Initiative on CNG and Electric Vehicles (Pi-CNG & EV), regulatory agencies, community leaders and other industry stakeholders.

Governor Abba Kabir Yusuf was represented by the Commissioner for Power and Renewable Energy, Engr. Dr. Gaddafi Sani Shehu.