The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has urged the Rivers State Government to urgently develop a comprehensive Compressed Natural Gas (CNG) programme to reduce transportation costs, attract investment and unlock the economic value of the state’s abundant gas resources.

PETROAN also declared readiness to collaborate with federal and state governments, gas producers, petroleum marketers, transport operators, investors and other stakeholders on viable CNG development programme.

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National President of PETROAN, Dr Billy Gillis-Harry, made the call while speaking to journalists in Lagos during an inspection of CNG refuelling locations, urging the Rivers State Government to study and adapt the emerging CNG model in Lagos to the state’s own economic and energy realities.

He said Rivers State’s status as one of Nigeria’s leading oil and gas-producing states, coupled with its industrial base and strategic location, gives it a unique opportunity to build a domestic gas economy that delivers greater benefits to residents and businesses.

“Rivers State has the resources, the industrial base and the strategic position to become a major CNG and gas-based transportation hub. We should not continue to produce gas without fully taking advantage of it to improve the lives of our people,” Gillis-Harry said.

PETROAN said wider CNG adoption could significantly reduce transportation and operating costs for commercial transport operators, particularly buses, taxis and other high-mileage vehicles, while attracting investment, creating employment, supporting local businesses and strengthening energy security.

The association also identified CNG as a comparatively lower-emission alternative to petrol and diesel for road transportation, arguing that a structured state-level programme could help Rivers capture more value from its gas resources while improving the efficiency of its transportation system.

To drive this transition, PETROAN proposed the establishment of a Rivers State CNG Conversion and Transportation Programme, incorporating conversion centres along major transportation corridors, incentives to reduce vehicle conversion costs and partnerships between the state government, private investors and gas companies to expand refuelling infrastructure.

The association further called for the integration of CNG-powered buses into the state’s public transportation system and the gradual conversion of vehicles operated by government ministries, departments and agencies to CNG.

It also recommended a stakeholder framework involving the Rivers State Government, gas producers, petroleum marketers, transport operators, vehicle conversion companies, financial institutions and other relevant stakeholders to coordinate the development of the state’s CNG ecosystem.

According to PETROAN, access to affordable financing will be critical to enabling commercial transport operators to convert their vehicles from petrol and diesel to CNG, given the upfront cost involved in vehicle conversion.

The association stressed, however, that expanding CNG infrastructure should complement rather than undermine the downstream petroleum sector. It said petroleum marketers could become major participants in the emerging gas economy by investing in CNG infrastructure and converting existing filling stations into multi-energy outlets capable of supplying petrol, diesel, CNG and other approved energy products.

Gillis-Harry said petroleum marketers must be positioned to participate actively in Nigeria’s transition towards a broader and more diversified energy market, rather than viewing the emergence of alternative fuels as a threat to their businesses.

PETROAN commended the Lagos State Government for demonstrating how subnational governments could support CNG adoption through infrastructure development, vehicle conversion initiatives and public transportation programmes.

It however advised Rivers State against simply replicating the Lagos model, saying the state’s CNG strategy should reflect its own gas resources, industrial capacity, transportation requirements and investment opportunities.

The association also urged the Rivers State Government to collaborate with the Federal Government’s Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG & EV), alongside gas producers, investors and other stakeholders, to accelerate the development of CNG infrastructure.

PETROAN said Rivers State could use the opportunity to transform its economic identity from being primarily an oil-producing state into a major gas-utilising state, with CNG and gas-based transportation forming an important part of its domestic energy economy.

It called on the state government to develop a practical and sustainable CNG roadmap capable of reducing transportation costs, attracting investment, creating jobs and ensuring that a greater proportion of the state’s gas resources is utilised within its economy.

The association said Rivers State now has an opportunity to build on its existing oil and gas advantages and emerge as one of Nigeria’s leading hubs for CNG development and gas-based transportation.