FG targets 2,000 CNG filling stations in 6 months — Rainoil boss
By Abisola THOMPSON
An integrated downstream oil and gas company boss, Gabriel Ogbechie, Group Managing Director, Rainoil Ltd., says the Federal Government is targeting the establishment of 2,000 Compressed Natural Gas (CNG) filling stations in the next six months.
Ogbechie said the move was aimed at providing a cheaper and cleaner alternative for vehicle users as the country moves toward the full deregulation of the downstream petroleum sector.
He spoke on Thursday during a webinar on ” Deregulation and Sustainable National Energy Future through Natural Gas.”
A prominent player in the Nigerian industry, the company’s operations span across the downstream value chain i.e. Petroleum Product Storage, Haulage/Distribution and Retail Sales. Our primary products include Petrol (PMS), Diesel (AGO), Kerosene (DPK) and Liquified Petroleum Gas (LPG).
The webinar was organised by the Association of Energy Correspondents of Nigeria (NAEC).
Ogbechie said a high delegation of government functionaries recently met with oil marketers to encourage investments on the autogas scheme.
According to him, a N200 billion infrastructure fund has been set up by the Central Bank of Nigeria (CBN) to support autogas facility roll-out by marketers.
He said: “Nigeria requires about $6 billion worth of investment. Marketers can leverage on this opportunity by investing in gas adoption and utilisation.
” Investment can be made in areas such as Liquefied Petroleum Gas (LPG) bulk storage, LPG trucks, LPG filling plants, LPG skids and Gas cylinder manufacturing, Liquefied Natural Gas (LNG) plants.”
The Rainoil boss maintained that the government could not continue to subsidise Premium Motor Spirit, noting that N10.413 trillion was spent on fuel subsidy between 2006 and 2019.
He said the huge funds could be channeled to other critical sectors of the economy such as health care, education and infrastructure development.
Ogbechie expressed optimism that the passage of the Petroleum Industry Bill (PIB) would bring about the deregulation of the downstream sector by law and not by government policy.
“A fully liberalised sector will enable marketers to freely source products and leverage supply chain options. It will create a level playing field and increased competition will improve efficiency and customer-service.
“It will allow for better planning and forecasting by marketers as well as attract more Foreign Direct Investment,” he said.
The downstream company was incorporated in November 1994. Commencing business as a petroleum products marketing company in May 1997, the company’s assets base has grown over the last 20 years to include:
• Bulk Storage – 3 ultra-modern petroleum product storage depots i.e. a 50 million litre capacity multi-product depot in Oghara, Delta State, a 50 million litre capacity multi-product depot in the Calabar Free Trade Zone, Calabar, Cross River State and a 50 million litre capacity multi-product depot in Ijegun, Lagos State.
• Retail Services – over 100 retail outlets spread across the country. Our stations are strategically located in major cities such as Lagos, Abuja, Kaduna, Port Harcourt, Calabar, Uyo, Enugu, Onitsha, Asaba, Makurdi, Sapele, Lafia, Keffi etc. We have a large and diverse customer base of retailers who rely on us for supply of products.
• Logistics – A fleet of over 100 tank trucks for efficient delivery of products to our network of stations and customers across the country. The fleet is frequently renewed through a deliberate truck acquisition policy.
• Marine Services – 1 shipping vessel; with a total carrying capacity of over 20,000 metric tonnes.
Rainoil Limited remains a wholly indigenous company and a recognised player in the downstream oil and gas industry. The ultra-modern head office is located in Lekki, Lagos State.
