Description

Natural gas is one of the cleanest, safest, and most useful forms of energy in our day-to-day lives. Natural gas is a hydrocarbon, which means it is made up of compounds of hydrogen and carbon. The simplest hydrocarbon is methane; it contains one carbon atom and four hydrogen atoms.

Natural gas can be found by itself or in association with oil. It is both colorless and odorless. While mainly methane, the other hydrocarbons include ethane, propane, and butane. Water, oil, sulphur, carbon dioxide, nitrogen, and other impurities may be mixed with the gas when it comes out of the ground.

These impurities are removed before the natural gas is delivered to our homes and businesses. The fact that natural gas is combustible and burns more cleanly than some ot her energy sources helps reinforce its position as one of the most highly used energy sources.

Compressed natural gas (CNG) is a mixture of methane eighty-seven to ninety-two percent (87 to 92%) and trace quantities of light hydrocarbons, nitrogen, and CO2, which are generated during geological transformation from peat to anthracite coal.

A natural gas that has been compressed at 200 to 250 bar pressure, which remains clear and non-corrosive. It’s an alternate fuel to diesel, petrol and black oil. Against diesel, compressed natural gas (CNG) is forty-five to fifty percent (45 to 50%) cheaper.

It is important for sustainable growth of industrial sector, owing to depletion in oil and coal reserves and limitation in emission properties of gas fuel. Specific compressed natural gas (CNG) is designed for customized end use in various applications that require higher performance or stability.

Cost-effective compressed natural gas (CNG) is preferred in many countries, owing to increasing oil prices. In addition, growth in energy requirement by various nations leads to use of compressed natural gas (CNG), which drives growth of the market during the forecast period (2020-2030).

Furthermore, surge in stringent government regulations in pollution control and increase in financial health of many countries across the globe fuels the compressed natural gas market growth during the forecast period.

However, initial investment cost, installation costs, and high cost of compressed natural gas (CNG) storage tanks in automobiles with limited number of compressed natural gas (CNG) fueling stations hinder the growth of compressed natural gas market in the future.

The global compressed natural gas market was valued at US$ 112.64 Bn in 2020. It is estimated to expand at a compound annual growth rate (CAGR) of twelve point three percent (12.3%) from 2021 to 2031. The global compressed natural gas market is expected to reach the value of US$ 465.52 Bn by the end of 2031.

Nigeria’s role as a major natural gas player is due to their large base of proved natural gas reserves and importance as a natural gas exporter. As of 2014, Nigeria had five billion, one hundred and eleven million (5,111,000,000) cubic metres of proved natural gas reserves. This gave them the ninth most proved natural gas reserves in the world and the most proved reserves in Africa.

However, Nigeria’s overall natural gas production is relatively low based on their large amount of proved natural gas reserves. Nigeria produced forty-three billion, eight hundred million (43,800,000,000) cubic metres of natural gas in 2014, which only made them the world’s ninetenth (19th) largest producer of natural gas globally.

However, this natural gas production represented a six point six percent (6.6%) growth compared to the previous year and Nigeria’s proved natural gas reserves illustrate that they have the opportunity to further grow production in the future.

Nigeria has started the roll out of compressed natural gas (CNG) as a key transport fuel as part of the government’s strategy to gradually wean the nation off the high-sulfur gasoline it normally runs its cars with.

The government launched its National Gas Expansion Programme (NGEP) on Dec. 1, 2020, focusing on the distribution of autogas (CNG) and liquefied petroleum gas (LPG) across gas stations operated by state energy company Nigerian National Petroleum Corporation (NNPC).

The Nigerian National Petroleum Corporation (NNPC) has estimated that domestic demand for natural gas will rise from current levels of one billion, five hundred thousand (1,500,000,000) cubic feet per day (Bcf) to seven billion, four hundred thousand (7,400,000,000) cubic feet per day (Bcf) by 2027.

Nigerian Independent Petroleum Company, NIPCO Plc, a downstream petroleum and gas operator, reports the number of vehicles in the country utilising compressed natural gas (CNG) now more than six thousand (6,000), up from the five thousand (5,000) NGVs reported in August 2015.

NIPCO’s Managing Director, Mr Venkataraman Venkatapathy, says the diversification of the company’s operations into natural gas fuel for transportation created a vista of opportunities for enhancement and empowerment of local content in the industry.

There are eight compressed natural gas (CNG) stations in Benin, Edo State and Ibafo, Ogun State along with four compressed natural gas (CNG) workshops.

Innoson Vehicle Motors (IVM) based in Nnewi is primed to produce cars that run on compresssed natural gas (CNG), a second foray in Nigeria after a pilot project in Benin City in 2010 by NIPCO Gas.

As of June 2020 about seven (7) compresssed natural gas (CNG) stations have been built with about seven thusand, five hundred (7,500) cars running on compresssed natural gas (CNG) in Benin City where major companies such as Coca-Cola, 7up, and Yongxing Steel are using CNG to power their fork-lifts/trucks.

The business of compressed natural gas (CNG) filling station has marked its place in the country through growth during the last few years.

This growth has opened up new opportunities and more compressed natural gas (CNG) filling stations are being setup all over Nigeria. The prime reason for this is the low cost of the fuel. Along with that, compressed natural gas (CNG) fuel is less hazardous to the environment as compared to the traditional petroleum fuel.