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Federal Government to Establish CNG Park at Ajaokuta Steel Company


Federal Government to Establish CNG Park at Ajaokuta Steel Company

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Federal Government to Establish CNG Park at Ajaokuta Steel Company

The Federal Government has revealed its intention to establish a Compressed Natural Gas (CNG) park at the Ajaokuta Steel Company in Kogi State. This announcement was made by the Minister of Steel Development, Prince Shuaibu Audu, through a statement issued by his Special Assistant on Media, Lizzy Okoji, in Abuja.

CNG, predominantly composed of methane, serves as an alternative fuel for vehicles, significantly compressed to occupy less than one percent of its volume at standard atmospheric pressure.

The Presidential CNG Initiative (Pi-CNG) was approved by President Bola Tinubu on August 18, 2023, as part of his palliative intervention strategy to mitigate the challenges arising from the removal of fuel subsidy. This initiative aims to transform transportation by introducing over 11,500 new CNG-enabled vehicles and providing 55,000 conversion kits for existing petrol-dependent vehicles. It also aims to reduce dependency on fossil fuels and promote a cleaner, healthier environment in Nigeria through the adoption of CNG-powered vehicles.

Minister Audu emphasized that the Pi-CNG initiative aligns with President Tinubu’s ‘Renewed Hope Agenda,’ demonstrating the government’s commitment to addressing the citizens’ challenges resulting from the fuel subsidy removal. The establishment of a CNG park at Ajaokuta Steel Company, according to the minister, leverages existing infrastructure such as the natural gas line from Warri to Ajaokuta, the Metallurgical Training Centre, engineering workshops, and the 10,000 housing estates in Ajaokuta vicinity.

Furthermore, Mr. Audu applauded the Nigerian Army for launching CNG vehicles for its operations under the Auto Switch Kick-off Pilot Programme powered by the Pi-CNG initiative. He urged other organizations to embrace CNG technology for its cost-effectiveness and its contribution to a sustainable environment.

In February, the minister announced plans to launch a three-year roadmap aimed at revitalizing 44 different production units of the Ajaokuta Steel Company through concession to investors.


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