The Midstream and Downstream Gas Infrastructure Fund (MDGIF) has concluded discussions with a leading Chinese Manufacturer, Endurance Group, to build 500 Compressed Natural Gas (CNG) refuelling stations across Nigeria for the next three years.

Executive Director, MDGIF, Oluwole Adama, disclosed this on Sunday after a meeting with the firm.

Mr Adama said the discussion centred on the creation of a government-backed Special Purpose Vehicle (SPV) promoted by MDGIF, Bank of Industry (BOI) and Endurance Group, Séquor Investment Partners.

He said, “The collaboration underscores the parties’ commitment to accelerating Nigeria’s transition to cleaner fuels by addressing infrastructure gaps across the country’s CNG value chain. Under this agreement, we will set-up the Compressed Natural Gas Auto Mobility Infrastructure Company (CAM InfraCo) which will be used to deploy 500 integrated CNG refuelling stations.

“We will develop LCNG gas supply infrastructure and provide CNG and LNG transportation trucks with truck-mounted cascades, forming a virtual pipeline across all states nationwide.’’

He said the project would ease the long queues currently being experienced at existing CNG filling stations by expanding access to refuelling points and ensuring consistent supply through improved logistics and distribution systems.

Similarly, the Senior Special Adviser to the President on Special Duties and Domestic Affairs, Oluwatoyin Subair, said the project aligned with President Bola Tinubu’s vision of ensuring energy security.

Mr Subair said the president’s vision aimed at deepening the use of auto CNG and reducing over dependence on Premium Motor Spirit (PMS) and Diesel, especially in the transportation sector.

He added that the initiative supports the administration’s broader economic reforms aimed at promoting cleaner, more affordable energy alternatives for Nigerians, and creating new employment opportunities within the domestic gas value chain.

Also speaking, the CEO, Endurance Group, Eric Lin, said that the objective of the SPV was to establish a nationwide CNG refuelling, maintenance and logistics ecosystem.

According to him, it aims at leasing CNG related equipment to certified operators, while ensuring a consistent and reliable gas supply through a world class virtual pipeline network.

CAM InfraCo’s leasing and logistics strategy is designed to create a commercially viable and resilient national CNG refuelling network.

The strategy focuses on delivering CNG from strategically located mother stations into underserved northern corridors and rapidly growing southern clusters.

It will leverage existing hubs and planned infrastructure to ensure sustainable and cost-effective market expansion to every nook and cranny of the country.

(NAN)