Get Guardian on GoogleMDGIF, Rolling Energy push for cleaner fuel, lower transport costs
The Federal Government has expressed confidence that the completion of the Ajaokuta-Kaduna-Kano (AKK) gas pipeline will accelerate investment in gas infrastructure in northern Nigeria, as two new Compressed Natural Gas (CNG) facilities commissioned in Kano are expected to supply about 2,500 cars and tricycles, and 200 trucks, daily.
The facilities, comprising a Liquefied-to-Compressed Natural Gas (LCNG) mother station with a daughter facility at Tamburawa and another at Hotoro Quarters, were commissioned yesterday by the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo.
However, the facilities, developed by Rolling Energy Limited, in partnership with the Midstream and Downstream Gas Infrastructure Fund (MDGIF), are expected to improve access to cheaper transportation fuel, reduce dependence on petrol and strengthen gas distribution across Kano and neighbouring states.
Ekpo, while speaking at the commissioning, said the AKK gas pipeline, which he put at about 90 per cent complete, would provide an additional supply opportunity for the region’s emerging gas infrastructure.
According to him, the pipeline has been laid up to Kano, with finishing touches remaining, while investments, such as those by Rolling Energy, are preparing the market to receive and distribute the gas when the project becomes operational.
He described the development as an opportunity to meet the realities on the ground, adding that Kano residents and businesses would benefit from improved gas availability.
The minister also commended Rolling Energy for meeting the requirements to access MDGIF financing, stressing that approval was not automatic and that applicants must satisfy specific technical, financial and regulatory conditions before funds could be released.
Ekpo said prospective investors must have the necessary certificates and regulatory approvals, secure land for their projects and provide gas sales and transportation agreements before their applications could be considered.
Earlier, the Executive Director of MDGIF, Oluwole Adama, said the facilities would make a significant difference to transport operators and businesses grappling with rising fuel costs.
Adama said the infrastructure would also support employment in vehicle conversion, maintenance, safety and logistics, while encouraging fleet owners, transport unions and other investors to embrace the alternative fuel.
He described stakeholders’ participation in expanding CNG infrastructure as encouraging, noting that increased availability and competition would eventually help to reduce transportation costs for commuters.
Also, Founder and Chief Executive Officer of Rolling Energy, Mubarak Danbatta, said the project was conceived in 2023 following the removal of the petrol subsidy, which prompted him to explore opportunities in the gas sector.
He said the Tamburawa mother station would serve as a supply hub for investors and operators in Kano, Jigawa, Zaria and surrounding areas, reducing the need to transport gas from Ajaokuta and Obajana in Kogi State.
