Sunday, August 6, 2023

OIL SUBSIDY PALLIATIVE: CASE FOR PROPOSED CONVERSION OF VEHICLES, GENERATORS TO UTILIZE GAS: BY MOSES AMADI


Nigeria, being a nation rich in natural gas reserves, has a golden opportunity to revolutionize its

transportation and power sectors by shifting towards utilizing gas as a primary fuel source for

vehicles and generating sets. While conventional fuel has been the dominant choice for decades,

the time has come to explore the merits of transitioning to gas as a cleaner, more sustainable, and

economically advantageous alternative.

A few years ago, the federal government rolled out its roadmap on the utilization of gas with

regard to sensitizing the nation on the need to embrace gas-powered vehicles and generating sets.

Preparations were in top gear to ensure the success of the project including the diagnosis to all

the scenarios which led to the adoption of a switchboard. There were locations across the six

geopolitical zones where it was envisaged that there would be co-locations of the product and

conversion centres. The government had pilot schemes in Benin city and Rivers state. It was

reported that over a million conversion kit procured in the country for the rollout was deployed

in phases.

This type of technology is being implemented by other western communities in Europe and

America. It is not something that is entirely new. Research shows that indigenous auto

companies have studied the scheme and its acceptability by Nigerians. They are determined to

make future plans to work with engine manufacturers to accommodate the production of

convertible engines if the new technology receives the buy-in of Nigerians.

There are numerous benefits of dual fuel capabilities such as LPG and petrol, and the positive

impact they could have on the country’s environment, economy, and energy security.

Automakers believe that this new concept is something they could easily switch to with the

vehicles coming out of their assembly lines. They are convinced that the new technology is good

for the country as it has large resources of LPG.

Beyond the safety issues, the initiative was capable of reducing the burden on fuel usage, thereby

demonstrating the socio-economic and environmental benefit of using gas as a cheaper cleaner

fuel as opposed to petrol that causes pollution and health hazards.

Basically, what indigenous vehicle manufacturing plants do is to manufacture the carcasses of

bodies of vehicles and put them on the engines that they buy from the engine manufacturers.

Some of them had already ordered engines before this new scheme was introduced. They are not

unmindful of the fact that most of the country’s current vehicle fleet is designed to run on

traditional petrol or diesel. Transitioning to gas-powered vehicles and generators would require

significant technological upgrades or engine conversions, which can be time-consuming for the

owners. The cost of procuring a carburetor and new cylinder is equally a challenge.


Shifting to gas-powered vehicles and generators will necessitate a significant initial capital

investment for both the government and private sector stakeholders. Building the necessary

infrastructure, retrofitting existing vehicles, and deploying new gas-powered vehicles will

require substantial funding.

Many people think this initiative will represent a transformative opportunity for Nigeria to

capitalize on its vast natural gas reserves, reduce environmental pollution, and bolster its

economic and energy security.

However, as the country explores the potential of using natural gas as an alternative to

conventional fuel for powering vehicles and generators, it faces a series of challenges that must

be addressed to ensure a successful transition. While the merits of adopting gas-powered vehicles

and generators are compelling, the road to implementation is riddled with obstacles that demand

careful consideration and strategic planning.

There are key challenges the country must confront in its journey towards utilizing gas as a

primary vehicle and generator fuel source and explore potential solutions to overcome them.

The lack of sufficient infrastructure to support widespread use of the technology is lamentable.

The country’s existing fuel distribution network is heavily focused on conventional petroleum

products, making it necessary to invest in building a robust natural gas refueling infrastructure.

Establishing an extensive network of refueling stations, pipelines, and storage facilities is crucial

to ensuring the availability and accessibility of natural gas for vehicle and generator owners

across the country.

There are not enough enlightenment campaigns that could have necessitated aggressive push of

converted engines into the market for people to see the benefits. The engines run cleaner and

safer which significantly mitigates the adverse effects of climate change. Limited awareness and

misconceptions can hinder widespread adoption. Many consumers may not be familiar with the

benefits of using natural gas, and some may harbour skepticism about its safety and reliability.

Overcoming the challenges associated with this transition requires a collaborative effort

involving the government, private sector, and citizens. By investing in infrastructure, technology,

safety measures, and public awareness campaigns, the country can pave the way for a successful

shift towards utilizing gas as a more sustainable fuel option.

The National Gas Policy was designed, among other objectives, to develop human capacity to

play in the gas space. By harnessing domestically sourced gas for vehicles and generators, the

nation can reduce its dependence on imported fossil fuels, and create a positive economic ripple

effect by stimulating local industries and reducing the foreign exchange burden of oil imports.

Gas-powered vehicles and generators offer a more cost-effective solution over time when

compared to traditional fuel-powered cars and generators. While the initial investment in

converting engines might be a concern, the lower operational and maintenance costs will

compensate for it. Additionally, the price stability of natural gas compared to volatile crude oil


markets ensures that consumers will benefit from stable and predictable fuel prices in the long

run.

The government and private sector stakeholders must collaborate to invest in the development of

a comprehensive gas refueling infrastructure. Strategic partnerships with gas companies and

international investors can accelerate the process, ensuring that gas refueling stations are

established in major cities and along major transportation routes. This process will create

employment opportunities across various sectors, thereby fostering economic growth and

development.

The government can incentivize vehicle and generator owners to convert their engines to run on

natural gas by providing tax breaks, subsidies, grants, low-interest loans, among others. This is a

representation of how the government can explore funding opportunities through public-private

partnerships, international grants, or multilateral development assistance to support the

transition.

Simultaneously, partnerships with automakers and industry experts can encourage the production

and importation of gas-powered vehicles at affordable prices to offer consumers more choices.

Concerns about the handling, transportation, and storage of natural gas must be addressed to gain

public trust. Accidents related to natural gas refueling or leakage can cause severe consequences,

which might deter consumers from embracing the technology.

Implementing stringent safety standards and regulations for handling natural gas is essential.

Training programmes should be developed to educate drivers, mechanics, and gas station

attendants on best practices for safe refueling and maintenance of gas-powered vehicles. Regular

inspections and safety audits of gas infrastructure must also be conducted to ensure compliance.

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