Following the recent rise in pipeline vandalism, power generation and gas supply to industries has been significantly impacted, escalating manufacturing costs as industries are forced to switch back onto more expensive and polluting diesel fired power generation.
Unfortunately the attacks on the pipelines are coming at a time when the Nigeria power sector started to gain momentum.
Compressed Natural Gas (CNG) is a good interim solution for manufacturing firms and residential estates seeking access to natural gas. CNG still offers a significant cost saving compared to diesel – the fuel price alone is about half of diesel. Natural gas is also a much cleaner fuel than diesel, reducing maintenance costs and wear and tear on industrial machinery.
When speaking at an energy conference, Deepak Khilnani, CEO of Powergas, reiterated his commitment to supplying natural gas via “Virtual Pipeline” to industries as an alternate and cost effective source of power generation.
Powergas Africa, Nigeria’s largest CNG producer and distributor, is filling this natural gas void in the market. Powergas pioneered the Nigerian CNG market, delivering an innovative ‘Gas on Wheels’ solution as an alternative to pipeline gas supply for customers across the country. CNG is also a popular alternative fuel source to diesel globally as it is easy and safe to transport through high-pressure skids directly to remote areas.
There are also many environmental benefits operating on natural gas, such as up to ten times less reduced nitrogen and carbon emissions.
“We understand the difficult market conditions for industries and national power generation – both the economic uncertainty coupled with the current gas crisis. Powergas is fully committed to finding power and gas solutions and is continuing to invest in new off pipeline compression and liquefaction plants to meet additional demand,” Khilnani said.