FG, Chinese firm to deploy 500 CNG stations nationwide under new energy transition plan
The Midstream and Downstream Gas Infrastructure Fund (MDGIF) says it has finalised discussions with leading Chinese manufacturer Endurance Group to roll out 500 Compressed Natural Gas (CNG) refuelling stations across Nigeria over the next three years.
Speaking in Abuja after a strategic meeting, MDGIF Executive Director, Oluwole Adama, said the partnership would be executed through a government-backed Special Purpose Vehicle (SPV) promoted by the MDGIF, the Bank of Industry (BOI), Endurance Group and Séquor Investment Partners.
Adama announced that the partners have agreed to establish the Compressed Natural Gas Auto Mobility Infrastructure Company (CAM InfraCo), which will drive the expansion of Nigeria’s CNG infrastructure.
“The collaboration underscores our joint commitment to accelerating Nigeria’s shift to cleaner fuels by filling critical gaps along the CNG value chain.
“Through CAM InfraCo, we will deploy 500 integrated CNG stations, build LCNG supply infrastructure, and provide CNG and LNG transportation trucks equipped with truck-mounted cascades to form a virtual pipeline system nationwide, ” he said.
Adama added that the rollout would help reduce the long queues currently experienced at existing CNG stations by increasing nationwide access to refuelling points and improving distribution logistics to ensure steady supply.
Senior Special Adviser to the President on Special Duties and Domestic Affairs, Oluwatoyin Subair, said the initiative aligned with President Bola Tinubu’s energy transition agenda, which aimed to lower dependence on petrol (PMS) and diesel (AGO), especially in the transport sector.
He said the project would also support government reforms targeted at promoting affordable clean energy, strengthening energy security and creating jobs within the domestic gas value chain.
Chief Executive Officer of Endurance Group, Eric Lin, said the SPV will establish a nationwide CNG ecosystem that includes refuelling, maintenance, logistics and gas distribution.
According to him, CAM InfraCo will achieve this by leasing CNG equipment to certified operators and ensuring reliable gas delivery through a world-class virtual pipeline network.
A statement outlining the project explained that CAM InfraCo’s leasing and logistics model is designed to build a commercially viable national CNG network focused on delivering gas from strategically located mother stations into underserved northern regions and fast-expanding southern corridors.
The plan leverages existing hubs and upcoming infrastructure to ensure sustainable, cost-effective CNG expansion “to every nook and cranny of the country,” the statement said.
