A 20-year sales and purchase agreement between the Nigerian Gas Company (NGC) and Sagas, a division of Borkir Energy Company Limited and subsidiary of the Dangote Group, was signed in Lagos on March 28th. The agreement involves the supply and distribution of compressed natural gas as alternative automotive fuel.
The NGC, a subsidiary of the Nigerian National Petroleum Corporation (NNPC) and the Federal Government, will supply Sagas with high pressured gas through its vast network of pipelines, compressing it to a cheaper, cleaner and sustainable alternative fuel or dual fuel for profitable business.
Speaking at the ceremony, Alhaji Sani Dangote, Chairman of Borkir, explained that the agreement signing was the beginning of a new era in gas utilisation in Nigeria. Vehicles would be converted to enable them to use the gas, he said, adding that conversion centres would be setup at various locations across the federation. The first outlet is now operational in Ikeja in partnership with a foreign firm.
A pilot conversion for gas usage has already 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 year.
Dangote revealed that Sagas has invested more than $20 million in the project so far, and added that the company would soon begin an exhibition of the process to show how safe, cost-effective and friendly the use of gas is to motorists. Dangote took the opportunity to thank NGC for the confidence shown in his company.
The Managing Director of NGC, Engr. Saidu Mohammed, hailed the agreement as part of the government’s gas revolution agenda, stating that the nation has enough gas to drive the project forward.
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