Comparative Study for the Successful Implementation of Compressed Natural Gas (CNG) Solution in Developed and Developing Countries

Abstract

Abstract Nigeria in the recent past has faced dual-fuel (petrol and diesel) shortages. The non-functional or sub-functional refineries have made the availability of these products even more scarce and expensive for the average Nigerian. The key source for the petroleum commodities identified has been importation, which has further depleted the much-desired forex required by the nation. Inversely, Nigeria has abundant Natural Gas Reserves estimated at 209 trillion cubic feet (NUPRC, 2023). A large chunk of her natural gas reserves is produced and exported leaving the domestic market with a meager portion for domestic utilisation for her rising population with a relatively low impact on national development. The use of Compressed Natural Gas (CNG) as a transport fuel therefore provides a two-fold opportunity to alleviate petroleum import dependency and reduce the economic pressure, especially for foreign exchange and subsidy expenditure. There is the current clamour for the implementation of Compressed Natural Gas usage in the country, but this if not well directed, could become a monumental failure and further exacerbate the economic situation of the country. There is a need for a well-guided and intentional implementation of the usage of CNG to ensure that its populace benefits from this natural and abundant resource. The study employed a qualitative inquiry approach, using a comparative study of secondary data from academic literature, published reports, online sources, and grey literature. The study aimed to identify the predominant themes from other climes by adapting compressed natural gas development initiatives from nine different countries with relevance to Nigeria. The writer posits that well- specified strategic objective, adequate legal framework and backing, learning and adaptation from previous implementations elsewhere in the world, appropriate and well-defined assignment of responsibilities to key players, adequate financial incentives, holistic and appropriate natural gas pricing, and natural gas vehicle (NGV) infrastructure development would be required to successfully implement compressed natural gas in Nigeria The study therefore concluded that a key factor for NGV market development in Nigeria is a well-coordinated implementation approach with greater government involvement required in setting strategic goals, developing the legal and regulatory frameworks, private sector partnership for infrastructural development, as well as assigning responsibilities to specific agencies. The short-term low-cost policy is encouraged and offering limited support for refueling and retrofitting facilities