Nigeria’s MDGIF, Chinese Firm to Build 500 CNG Stations in Three Years

By Adedapo Adesanya

The Midstream and Downstream Gas Infrastructure Fund (MDGIF) and a Chinese manufacturer, Endurance Group, have reached an agreement to build 500 Compressed Natural Gas (CNG) refuelling stations across Nigeria for the next three years.

According to the Executive Director of the MDGIF, Mr Oluwole Adama, this will be done via the creation of a government-backed Special Purpose Vehicle (SPV) promoted by MDGIF, Bank of Industry (BoI), Endurance Group, and Séquor Investment Partners.

Mr Adama said 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, it will set up the Compressed Natural Gas Auto Mobility Infrastructure Company (CAM InfraCo), which will be used to deploy 500 integrated CNG refuelling stations, develop LCNG gas supply infrastructure, and provide CNG and LNG transportation trucks with truck-mounted cascades, forming a virtual pipeline across all states nationwide,” Mr Adama stated.

Mr Adama further noted that the project will help ease the long queues currently being experienced at existing CNG filling stations by expanding access to refuelling points and ensuring consistent supply through improved logistics and distribution systems.

Similarly, Mr Oluwatoyin Subair, the Senior Special Adviser to the President on Special Duties and Domestic Affairs, said the project aligns with President Bola Tinubu’s vision of ensuring energy security by deepening the use of auto CNG and reducing overdependence on Premium Motor Spirit (PMS) or petrol and Automotive Gas Oil (AGO) or diesel, especially in the transportation sector.

He added that the initiative supports the administration’s broader economic reforms aimed at promoting cleaner, more affordable energy alternatives for Nigerians, and creating new employment opportunities within the domestic gas value chain.

On his part, the Chief Executive Officer, Endurance Group, Mr Eric Lin, explained that the objective of the SPV is to establish a nationwide CNG refuelling, maintenance, and logistics ecosystem by leasing CNG-related equipment to certified operators, while ensuring a consistent and reliable gas supply through a world-class virtual pipeline network.