(Ecofin Agency) - Nigeria has on Tuesday launched a new scheme to transport liquefied natural gas (LNG) to regions not linked by pipeline. This also involves the supply of cheaper and cleaner fuel to power plants as well as industries.

Under the new plan, the Nigerian National Petroleum Corporation (NNPC), the Nigerian unit of France’s Total and Gas Aggregation Company Nigeria Ltd (GACN) would supply gas to a small LNG plant run by indigenous firm, Greenville LNG.

Greenville would, in turn, deliver the gas to industries and companies around the nation using trucks powered by LNG.

“Greenville will transport products with specialized LNG trucks, which have the capacity to travel about 1,000 km on LNG before refueling,” Morgan Okwoche, GACN Managing Director said.

Okwoche noted, LNG is cheaper and lighter to transport than other fuel adding that the trucks could supply areas not connected by pipeline to create a virtual pipeline network.

According to Oil Minister, Emmanuel Kachikwu, investors in the country have been looking for a way to access and distribute gas in the absence of pipelines. “This is not to take the need away from the pipelines, we are going to continue to work on providing pipelines.”

Nigeria, Africa’s largest oil producer, lacks adequate refining capacity, so most of its crude is exported while gasoline and other refined products are imported.

As a matter of fact, the country’s creaking power network signifies that companies and homes often depend on expensive diesel generators, as power generation still fluctuates between 3,656.40MW and 4,345.5MW, below Nigeria’s total installed electricity capacity of 12,522MW.

Anita Fatunji