A subsidiary of Dangote Group and division of Borkir Energy, Sagas, has signed a 20 year agreement with the Nigeria Gas Company (NGC) to supply and distribute compressed natural gas as alternative automotive fuel
The scheme will involve Sagas attaining high-pressured gas from the NGC through its pipelines and compressing it into a cheaper and sustainable alternative fuel or dual fuel for profitable business. The process also promises to reduce gas flaring.
Borkir chairman Sani Dangote explained that the agreement signing was the beginning of a new era in gas utilisation in Nigeria.
He said that vehicles would be converted to be able to use the gas and that conversion centres would be established at various points across the federation. He also disclosed that such centres had been already opened at Ikeja, suburb of the city of Lagos, in partnership with a foreign firm.
Dangote further disclosed that a pilot conversion for gas usage had commenced with the enlistment of Dangote Group’s 5,000 trucks which were being converted for dual fuel usage in the form of both gas and diesel.
NGC managing director Saidu Mohammed described the agreement as part of the gas revolution agenda of the government, saying that the nation has enough gas and that it was a positive step that the gas was being domesticated for commercial use.
Mohammed stated that NGC, with a network of about 1,500km gas pipeline, will be able to offer Nigerians affordable gas as fuel, safe and devoid of environmental pollution.