Kano State Investment Promotion Agency (KANINVEST) has signed a Memorandum of Understanding, MoU, with STATA Power Utility Nigeria Limited on the implementation of a customized gas programme in the state.

Speaking at the signing of the MoU on Friday, the Director General of the agency, Muhammad Nazir Halliru, said the deal is a significant milestone initiated to reducing greenhouse gas emissions.

The project will also enable a clean environment and create job opportunities for teaming youth.

According to him, the programme, when actualized would entail the supply of Compressed Natural Gas, CNG, and conversion of vehicles from using petroleum gas.

Halliru explained the effort to check the high pump price of petroleum and its impact on commercial transport.

“This reflects the vision of this administration in terms of creating a more conducive environment by reducing greenhouse gas emissions, keeping a healthier and clean environment, and creating job opportunities,” he said.

“The supply of the gas will go beyond only the vehicles but also supplying to industries and major companies that are using CNG or can opt to use it to improve their production and their services.”

The DG noted that the implementation of the partnership would be in about six months after the company set up the gas stations in the state.

“So we’ve just secured the approval of His Excellency the Executive Governor for this huge investment. We hope the implementation will be in the next coming months, perhaps six months or so by the time they can establish their factories to establish the company and the location, location which has already been approved by them,” he said.

“They are also going to have additional incentives in terms of tax waivers as a Pioneer investment.”

The Chief Executive Officer of the company, Salman Dantata, expressed delight at the “groundbreaking” MoU signing, which, according to him, would help bring down the cost of transportation and boost industrialization in Kano.

“This initiative is in line with global trends toward cleaner energy, economic development, and environmental sustainability,” he said.

“By transitioning from traditional fuel sources to compressed natural gas, CNG, for automobiles, this program seeks to reduce the transportation costs, improve air quality, reduce carbon emissions, and enhance energy efficiency across Kano State.”

Dantata explained that the investment could be up to $15 million by STATA over the next two years for the deployment of the LCNG stations across the state.
According to him, the firm intends to invest in conversion kits and set up the conversion centre within the stations.

He said in the next year, the company would commence the provision of 5000 solar-powered tricycles and 10 motor vehicles for commercial purposes in the state.

Mr Dantata explained that the mother station would be situated in the Tamburawa area in the Kura Local Government area of the state with a capacity of 110 metric tons a day.

The sister gas stations, with a 2 metric tons capacity each, according to Dantata, would be situated at Dalladi Nasidi, Maiduguri Road, IBB Road, Shagari Quarters, Cotton Gingery, Sharada, and Bechi quarters.

He disclosed that the firm plans to expand to 20 stations within five years, adding that the project would create over 300 direct and 5000 indirect jobs for teeming youths in the second most populous state in the country.