Business
NGC, Dangote Sign Pact On Vehicle Fuel Alternative
A milestone has been recorded in the nation’s match towards gas revolution with Sagas, a division of Borkir Energy Company Limited, and subsidiary of Dangote Group signing a 20-year sales and purchase agreement with the Nigeria Gas Company Limited to supply and distribute compressed natural gas as alternative automotive fuel.
The novel scheme, which will reduce gas flaring, involves Sagas getting high pressured gas from the NGC through its vast network of pipelines and compress it to a cheaper, cleaner and sustainable alternative fuel or dual fuel for profitable business.
A statement by Sagas obtained on Friday quoted the Chairman of Borkir, Mr. Sani Dangote, as saying at the signing ceremony that the agreement was the beginning of a new era in gas utilisation in Nigeria.
He said his company had kick-started the necessary process to provide gas as alternative to automobile and industrial fuel.
He stated that vehicles would be converted to be able to use the gas and that conversion centres would be established at various points across the federation.
According to him, a centre has already been opened in Ikeja in partnership with a foreign firm.
Dangote further disclosed that a pilot conversion for gas usage had commenced with the enlistment of Dangote Group’s 5,000 trucks which are being converted for dual fuel usage (gas and diesel), with the hope of converting 20,000 vehicles within the next one year.
While pointing out the advantages of use of gas as alternative fuel for vehicles over petrol or diesel, he noted that the gas is readily available in large quantity and environmentally friendly, guaranteeing price stability and engine durability.