HeadlinesOil & Gas By maritimemag December 2, 202043 views ShareTweet 0 There is consensus to stabilize fiscal framework to assure oil investors – Sylva Chinazor Megbolu | The Federal Government on Tuesday said that the conversion of petrol to gas powered vehicles initiative will be for free. The Minister of State for Petroleum Resources, Dr. Timipre Sylva, while addressing journalists noted that the conversion to compressed natural gas (CNG) for vehicles in Nigeria would be absolutely free. The Minister, during the rollout of the National Gas Expansion Programme (NGEP) pointed out that the conversion is taking off with immediate effect. “Conversion is going to begin now and it will be forever and ever. “Anybody that owns a car and wants to convert to dual fuel can go to a conversion centre and convert his or her car. “It is going to be an ongoing thing and it will be for free at all times,” he said. Sylva also said that CNG is a fuel that can be used in place of gasoline, diesel fuel and Liquefied Petroleum Gas (LPG). He added that CNG combustion produces fewer undesirable gases than the other fuels. “It is no longer news that the vast natural gas resources which Nigeria is endowed with has hitherto been used sub-optimally as a result of a dearth of gas processing facilities and infrastructural connectivity for effective and optimal domestic utilisation. “As I mentioned above, with a proven reserve of about 203 trillion cubic feet (TCF) and additional upside of 600 TCF, ranking Nigeria as the 9th in the world currently, the need for domestic gas expansion and utilisation is apparent,” Sylva said. “Therefore, the roll-out of the National Gas Expansion Programme, the auto-gas initiative, is coming at the right time, especially in light of global crude oil market fluctuations coupled with the full deregulation of the local PMS market. “These developments have made it imperative to focus on gas as an alternative fuel to move Nigeria from the conventional dependence on white products for autos and prime-movers of industrial applications, to cleaner, more available, accessible and affordable energy sources. “The outcome will not only cushion the effect of the downstream deregulation that this government has to painfully implement, but also create new markets and enormous job opportunities for our people,’’ he said. Sylva maintained that there would be no loopholes, saying that gas resource was already in existence in Nigeria. “I don’t think we are going to have any loopholes. Gas resources already exist in this country. “Unfortunately, we have not utilised these gas resources optimally. “We have over 200tcf of gas already discovered. So, we have the gas resources. “Already, the Ministry of Petroleum Resources is embarking on the gas commercialisation programme. This is all geared towards the supply side. “And in a few days from now, we will be launching a gas facility in Edo State; all these are geared towards the supply side. “So, we also want to encourage the utilisation side, the demand side of it. And we just started today. “We have always said that gas is the area that will create linkages with the people. “Gas will power the industries, like you know, gas can be converted to fertiliser, and the fertiliser industry will power the agricultural industry. “Gas can be converted to methanol, and methanol will power the chemical industry; of course, you know the power sector can also be powered by gas. “Gas can also power the petrochemical industries that can also create a lot of jobs. Today’s roll-out marks the beginning of optimal utilisation of gas for the benefit of Nigerians,” Sylva said. © 2020, maritimemag. All rights reserved.