Nigeria launches ambitious plan to convert car fleet to gas

By Libby George
LAGOS, Dec 1 (Reuters) - Nigeria will offer free conversion
to enable some cars to run on gas, and its Central Bank will
make some 250 billion naira ($656.69 million) available for
infrastructure in a bid to expand gas use and cut reliance on
imported fuel, the government said on Tuesday.
Africa's largest oil exporter is aiming to have 1 million
gas-powered cars by 2021, and to convert of 40% of its fleet
within 10 years.
The plan, launched by President Muhammadu Buhari, is part of
the oil- and gas-rich nation's effort to free itself of costly
gasoline subsidies while avoiding public anger over higher pump
prices.
The COVID-19 pandemic has slammed oil prices, which provide
90% of Nigeria's foreign exchange and more than half of its
budget.
"These developments have made it imperative to focus on gas
as an alternative fuel," Buhari said via video link to the
event.
Nigeria removed gasoline pump price controls earlier this
year, but is still setting prices ex-depot, which has made it
difficult for private companies to import fuel. NNPC's oil
refineries were completely shut down earlier this year in
advance of hoped-for overhauls, leaving the nation entirely
dependent on imported fuel.
NNPC head Mele Kyari said that select NNPC stations across
Nigeria will offer free conversion of "some cars" to enable them
to run on liquefied petroleum gas (LPG) or compressed natural
gas (CNG). There are currently 80 locations in the country
capable of fuelling the vehicles.
Nigeria has the world's ninth-largest gas reserves, and
vehicles that run on gas are generally cleaner and better for
the environment. But gas must be cool or pressurised for
distribution, and the infrastructure for transporting,
processing and distributing it would cost billions of dollars.


($1 = 380.7000 naira)