Nigeria Opens New CNG Facilities in Kano to Expand Cheaper, Cleaner Transport

KANO, Nigeria — Nigeria has commissioned new Liquefied-to-Compressed Natural Gas, or LCNG, facilities in Kano State as the Federal Government continues its push to expand access to compressed natural gas for transport and other commercial uses.

The facilities were developed by Rolling Energy Limited with support from the Midstream and Downstream Gas Infrastructure Fund, known as MDGIF. They include a major LCNG distribution hub at Tamburawa in Dawakin Kudu Local Government Area, a retail station, and an LCNG daughter station at Hotoro in Tarauni Local Government Area.

Officials said the new infrastructure could help improve access to CNG in Kano and surrounding areas, where limited gas infrastructure has been one of the obstacles to wider adoption of the fuel.

Facilities Target Thousands of Vehicles Daily

The Tamburawa facility includes a major LCNG hub with a designed capacity of about 300,000 standard cubic metres per day, while the Hotoro facility has a capacity of 21,000 standard cubic metres per day.

Officials said the combined infrastructure is expected to support the refuelling of up to 2,500 cars and tricycles daily, as well as supplying gas for up to 200 trucks.

The facilities are designed to receive, store and process liquefied natural gas before distributing it as compressed natural gas to retail stations and end users.

This is particularly important for northern Nigeria, where the distance from major gas supply locations has increased the cost and logistical difficulty of delivering CNG to emerging markets.

Rolling Energy said the Tamburawa hub could serve as a supply point for additional CNG stations and investors across Kano, Jigawa, Zaria and other parts of northern Nigeria.

Cheaper Fuel for Transport Operators

Supporters of the project say wider access to CNG could help commercial transport operators reduce their fuel costs.

MDGIF Executive Director Oluwole Adama said petrol was selling at around ₦1,420 per litre in Kano, while an equivalent amount of energy from CNG cost approximately ₦600.

Using those figures, officials estimated that a commercial tricycle operator spending about ₦14,200 daily on petrol could reduce the equivalent daily fuel cost to around ₦6,000 by switching to CNG.

That would represent a potential saving of about ₦8,200 per day, although actual savings will vary depending on vehicle efficiency, fuel consumption and operating conditions.

Lower fuel costs could benefit commercial drivers and fleet operators, while potentially reducing operating expenses for businesses that depend heavily on road transport.

However, cheaper CNG does not automatically guarantee lower passenger fares, as transport operators also face costs related to vehicle maintenance, repairs, tyres, labour and other expenses.

Building a Northern Gas Distribution Network

The Federal Government sees the expansion of CNG infrastructure as part of a wider strategy to increase domestic gas utilisation.

Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, said the development could strengthen gas distribution in Kano and surrounding areas.

The government also expects the completion of the Ajaokuta-Kaduna-Kano gas pipeline, known as the AKK pipeline, to create additional supply opportunities for northern Nigeria's growing gas infrastructure. Officials said the project could support further investment in gas distribution once it becomes operational.

The Kano facilities were developed through a partnership between the MDGIF and Rolling Energy. According to reports, the broader partnership covers plans for additional gas infrastructure across several states and the Federal Capital Territory.

A Step in Nigeria's CNG Transition

Nigeria has been promoting compressed natural gas as an alternative to petrol and diesel, particularly following rising fuel costs in recent years.

CNG is generally promoted as a cleaner-burning fuel and, in Nigeria's current market, can provide a cheaper energy option for suitable vehicles.

However, the transition depends heavily on infrastructure. Drivers and fleet operators need reliable access to refuelling stations, while vehicles require conversion or must be designed to operate on natural gas.

The new Kano facilities therefore represent an important part of the infrastructure needed to support wider CNG adoption.

For now, the commissioning provides additional gas distribution and refuelling capacity in one of northern Nigeria's largest commercial centres.

The longer-term impact will depend on how effectively the facilities operate, whether more vehicles are converted to use CNG and whether Nigeria can continue expanding reliable gas supply infrastructure across the country.