With the approval of the Federal Government in a letter dated March 21, 2007, by President Olusegun Obasanjo, Nigeria joined the league of nations using natural gas to power their transportation needs.
With a population that grew by almost 400 percent to 180 million between 1960 and 2016, with significant urban drift, the demand for transportation energy will increase.
Despite these challenges, Nigeria continues to flare about 20 percent of associated gas in the oil exploration and production process. The Nigeria National Petroleum Corporation (NNPC) reported that oil producers flared about 51 percent of the associated gas produced between 1990 and 2010, a volume of about 459 billion cubic metres (bcm). This volume is equivalent to 53 billion litres of gasoline, which is more than 14.5 years worth of Nigeria’s gasoline consumption. To address the twin challenges of gas flaring and fuel shortages, the use of compressed natural gas (CNG) as an automotive fuel was proposed in the 1990s, to harness natural gas resources, but progress has been slow. Read more