Kano State Investment Promotion Agency, has signed a Memorandum of Understanding, with STATA Power Utility Nigeria Limited on implementation of a customized gas programme in the state.
The Director General of the agency, Muhammad Halliru who disclosed this during the signing of the MoU on Friday, said the contract 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.
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He said the programme, if implemented, would entail the supply of Compressed Natural Gas and conversion of vehicles from using petroleum gas.
The DG explained that the effort 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 to industries and major companies that are using CNG or can opt to use it in order to improve their production and services,” he said.
The DG disclosed that the implementation of the partnership would be in about six months time after the company set up the gas stations in the state.
“So we’ve 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, location which has been already approved to them.
” They are also going to have additional incentives in terms of tax waivers as a Pioneer investment,” he explained.
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On his part, the Chief Executive Officer of the company, Salman Dantata expressed delight for the “groundbreaking” MoU signing which, according to him, would go a long way in bringing down cost of transportation and boost industrialization in Kano.
“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 program seeks to reduce the transportation costs, improve air quality, reduce carbon emissions, and enhance energy efficiency across Kano State,” he said.
Mr Dantata explained that the investment could be up to $15 million by STATA over the next two years for deployment of the LCNG stations across the state.
According to him, the firm is intended to invest in conversion kits and setting up the conversion centre within the stations.
He 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.
Dantata explained that the mother station would be sited at Tamburawa area in Kura Local Government area of the state with a capacity of 110 metric tons a day.
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“The sister gas stations, with two metric tons capacity each will be situated at, Dalladi Nasidi, Maiduguri Road, IBB Road, Shagari Quaters, Cotton Gingery, Sharada and Bechi quarters.
He said the firm plans to expand to 20 stations within five years in addition to creating over 300 direct and 5,000 indirect jobs to teeming unemployed youths in the state.
