The Midstream and Downstream Gas Infrastructure Fund (MDGIF) has concluded discussions with leading Chinese manufacturer Endurance Group to deploy 500 compressed natural gas (CNG) refuelling stations across Nigeria within the next three years, in a move aimed at easing persistent queues at existing stations.

Executive Director of MDGIF, Mr. Oluwole Adama, said in a statement in Abuja that the talks focused on establishing a government-backed Special Purpose Vehicle (SPV) involving 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 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,” Adama said.

He noted that the project will reduce long queues at existing CNG stations by expanding access to refuelling points and improving supply through enhanced logistics and distribution systems.

Similarly, the Senior Special Adviser to the President on Special Duties and Domestic Affairs, Mr. Oluwatoyin Subair, said the initiative aligns with President Bola Tinubu’s vision of strengthening energy security by deepening the adoption of auto-CNG and reducing dependence on PMS and AGO, particularly in the transportation sector.

Subair added that the project also supports the administration’s broader economic reforms aimed at promoting cleaner and more affordable energy alternatives while creating employment opportunities within the domestic gas value chain.

CEO of Endurance Group, Mr. Eric Lin, said the SPV aims to build a nationwide CNG refuelling, maintenance, and logistics ecosystem by leasing CNG-related equipment to certified operators and ensuring steady gas supply through a world-class virtual pipeline network.

CAM InfraCo’s leasing and logistics model is designed to deliver a commercially viable and resilient national CNG network, supplying gas from strategically located mother stations into underserved northern corridors and fast-growing southern clusters. The strategy leverages existing hubs and planned infrastructure to support sustainable, cost-effective market expansion nationwide.

(Vanguard)