Abuja: The Midstream and Downstream Gas Infrastructure Fund (MDGIF) has finalized an agreement with Chinese manufacturer, Endurance Group, to establish 500 Compressed Natural Gas (CNG) refuelling stations throughout Nigeria over the next three years. Mr Oluwole Adama, Executive Director of MDGIF, revealed this development following a meeting with the firm.
According to News Agency of Nigeria, the discussions focused on forming a government-supported Special Purpose Vehicle (SPV), to be promoted by MDGIF, the Bank of Industry (BOI), Endurance Group, and S©quor Investment Partners. Mr Adama emphasized that the collaboration demonstrates a commitment to advancing Nigeria’s transition to cleaner fuels by addressing infrastructure deficits in the nation’s CNG value chain. The initiative involves the creation of the Compressed Natural Gas Auto Mobility Infrastructure Company (CAM InfraCo), which will be responsible for deploying the integrated CNG refuelling stations nationwide.
Adama noted that the project aims to mitigate the long-standing issue of queues at existing CNG filling stations by expanding access to refuelling points and ensuring a steady supply through enhanced logistics and distribution frameworks. This initiative aligns with President Bola Tinubu’s vision of bolstering national energy security by promoting the use of auto CNG and reducing reliance on Premium Motor Spirit (PMS) and diesel, particularly in the transportation sector.
Mr Oluwatoyin Subair, Senior Special Adviser to the President on Special Duties and Domestic Affairs, highlighted that the project supports broader economic reforms aimed at fostering cleaner and more affordable energy alternatives, while also creating employment opportunities within the domestic gas value chain. Mr Eric Lin, CEO of Endurance Group, discussed the SPV’s objective to establish a nationwide CNG refuelling, maintenance, and logistics ecosystem. The SPV plans to lease CNG-related equipment to certified operators while ensuring a consistent and reliable gas supply through a virtual pipeline network.
The strategy of CAM InfraCo focuses on transporting CNG from strategically located mother stations to under-served northern regions and rapidly developing southern areas. This approach will utilize existing hubs and planned infrastructure to support sustainable and cost-effective market expansion across Nigeria.