CNG: Kano Govt Signs $15m Deal With STATA Power Utilities On Customized Gas Programme
By Abdullahi Yusuf
The Kano State Investment Promotion Agency(KANINVEST) has signed a Memorandum of Understanding(MoU)with STATA Power Utilities Nigeria Limited on the implementation of a customized gas programme in the state.
Speaking at the signing of the MoU at KANINVEST headquarters in Kano on Friday, the Director-General of the agency, Muhammad Nazir Halliru, said the deal, worth $15 million, is a significant milestone towards creating a more conducive environment by reducing greenhouse gas emissions, keeping a healthier and clean environment and creating job opportunities.
According to Halliru, the programme, if implemented, will entail the supply of Compressed Natural Gas, CNG and conversion of vehicles using petroleum gas.
He explained that the initiative is aimed at addressing the challenges of petroleum prices and transportation in the commercial state.
“This reflects the vision of this administration in terms of creating a more conducive environment by reducing greenhouse gas emissions, keeping a healthier and clean environment and creating job opportunities.
“The supply of the gas will go beyond only the vehicles but also supplying to industries and major companies that are using CNG or can opt to use it in order to improve their production and their services,” he said.
The Director-General said the implementation of the partnership would be for a period of about six months after the company set up the gas stations in the state.
“So we have just secured the approval of His Excellency the Executive Governor for this huge investment. We hope the implementation will be in the next coming months, perhaps six months or so by the time they are able to establish their factories to establish the company and the location, the location has already been approved for them.
” They are also going to have additional incentives in terms of tax waivers as a pioneer investment,” he said.
In his remarks, the Chief Executive Officer(CEO) of the company, Salman Dantata, expressed delight at the “groundbreaking” MoU signing which according to him, would help in bringing down the cost of transportation and boost industrialization in the state.
“This initiative is in line with global trends toward cleaner energy, economic development and environmental sustainability.
“By transitioning from traditional fuel sources to compressed natural gas, CNG, for automobiles, this programme seeks to reduce the transportation costs, improve air quality, reduce carbon emissions and enhance energy efficiency across Kano State,” Dantata said.
He explained that the investment could be up to $15 million by STATA over the next 2 years for deployment of the LCNG stations across the state.
According to him, the firm intends to invest in conversion kits and setting up the conversion centre within the stations.
The CEO said in the next one year, the company would commence provision of 5000 solar-powered tricycles and 10 motor vehicles for commercial purposes in the state.
He said the mother gas station would be sited at Tamburawa town with a capacity of 110 metric tons a day.
The sister gas stations, with 2 metric tons capacity each, according to Mr Dantata, would be situated at Danladi Nasidi, Maiduguri Road, IBB Road, Shagari Quaters, Cotton Gingery, Sharada and Bechi quarters.
He also disclosed that the firm would plan to expand to 20 stations within 5 years, adding that the project would create over 300 direct and 5000 indirect jobs to teeming youths in the state.
