Nigeria: MDGIF Engages Chinese Firm To Build 500 CNG Refueling Stations In 3 Years

Nigeria has concluded discussions with a leading Chinese manufacturer, Endurance Group, to construct 500 Compressed Natural Gas (CNG) refueling stations across the country over the next three years.

The project is being spearheaded by the Midstream and Downstream Gas Infrastructure Fund (MDGIF).

Executive Director of the MDGIF, Mr. Oluwole Adama, told reporters after a meeting with the Chinese firm that the talks focused on creating a government-backed Special Purpose Vehicle (SPV) to be promoted by the MDGIF, the Bank of Industry (BOI), Endurance Group, and Séquor Investment Partners.

“The collaboration underscores the parties’ commitment to accelerating Nigeria’s transition to cleaner fuels by addressing infrastructure gaps across the country’s CNG value chain.

“Under this agreement, we will set up the Compressed Natural Gas Auto Mobility Infrastructure Company (CAM InfraCo), which will be used to deploy 500 integrated CNG refueling stations.

“We will develop Liquified CNG gas supply infrastructure and provide CNG and LNG transportation trucks with truck-mounted cascades, forming a virtual pipeline across all states nationwide,” Adama said.

He explained that the project would help ease the long queues currently experienced at existing CNG filling stations by expanding access to refueling points and ensuring consistent supply through improved logistics and distribution systems.

Similarly, the Senior Special Adviser to the President on Special Duties and Domestic Affairs, Mr. Oluwatoyin Subair, said the project aligns with President Bola Tinubu’s vision of strengthening national energy security.

Subair noted that the President’s plan aims to deepen the use of auto-CNG and reduce overdependence on Premium Motor Spirit (PMS) and diesel, particularly within the transportation sector.

He added that the initiative supports the administration’s broader economic reforms geared toward promoting cleaner and more affordable energy alternatives while creating new employment opportunities within the domestic gas value chain.

Also speaking, the CEO of Endurance Group, Mr. Eric Lin, said the objective of the SPV is to establish a nationwide CNG refueling, maintenance, and logistics ecosystem.

According to him, it aims to lease CNG-related equipment to certified operators while ensuring a consistent and reliable gas supply through a world-class virtual pipeline network.

CAM InfraCo’s leasing and logistics strategy is designed to deliver a commercially viable and resilient national CNG refueling network.

The strategy focuses on moving CNG from strategically located mother stations to underserved northern corridors and rapidly growing southern clusters.

It will leverage existing hubs and planned infrastructure to support sustainable and cost-effective market expansion across the country.