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Presidential CNG Initiative secures NMDPRA’s ‘special concessionary pricing’ for Mobility CNG

Some CNG-Powered Buses

*The Presidential CNG Initiative says the Nigerian Mainstream And Downstream Petroleum Regulatory Authority has expressed its support for mass adoption of CNG-powered vehicles with ‘a special concessionary pricing’ to Mobility CNG under its pricing framework for gas in the West African in the country’

Gbenga Kayode | ConsumerConnect

The Nigerian Mainstream And Downstream Petroleum Regulatory Authority (NMPDRA) has reiterated its commitment to supporting efforts of the Federal Government through the Presidential Compressed Natural Gas Initiative (PCNGI) at managing, financing and developing domestic CNG vehicles for Nigeria transportation market.

The Authority said this would ensure the support and mass adoption of CNG-fuelled vehicles in the country by providing “a special concessionary pricing to Mobility CNG under its pricing framework for gas in the country.”

Michael Oluwagbemi, Programme Director/Chief Executive of PCNGI, who disclosed this development in a statement issued Tuesday, April 23, 2024, in Abuja, FCT, noted the information was contained in a letter from Mr. Farouk Ahmed, Authority Chief Executive (ACE), dated 20th April, 2024, and addressed  to his office.

Oluwagbemi said in line with this arrangement, NMPDRA had designated mobility Compressed Natural Gas as a special status, which will serve as a subset of Gas to Commercial (GTC).

The Chief Executive of PCNGI also revealed this  entitle the CNG Initiative to Gas Based Industry (GBI ) pricing categorisation for an initial period of five years, and renewable for another five years only in accordance with the provisions of Petroleum Industry Act (PIA) 2021.

The GBI pricing of $1.57/MMBtu is set much lower than ordinary $2.42 and $2.92 for Power and Commercial buyers respectively.

He stated the Presidential Committee on Compressed Natural Gas, led by Dr. Zacch Adedeji, had initially requested strategic gas allocation for Mobility focused Compressed Natural Gas projects, in a form of pricing concession.

“This milestone concession is a significant achievement of the PCNGI collaborative work with NMPDRA.

“This concession is expected to spur investors confidence and commercial activities in the nascent market while promoting government policy aspiration for the sector,” said Oluwagbemi.

The PCNGI further urged all stakeholders in the sector to take full advantage of this concessionary pricing model for Mobility CNG, and recommit themselves to the future of a gas driven transportation sector that lowers food and energy inflation.

He equally noted this would enable them to enjoy a cleaner, cheaper, safer, and more reliable energy for powering the economy forward in line with the vision of President Bola Ahmed Tinubu.

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