PCNGI links Benin gas explosion to unapproved cylinder

The Presidential Compressed Natural Gas Initiative (PCNGI) has attributed the recent gas explosion at the NIPCO CNG station in Benin City, Edo State, to the use of an unauthorized, modified gas cylinder. The explosion, which occurred on October 16, 2024, in Aduwawa, Ikpoba Hill, left several people injured and caused significant property damage, reigniting concerns about safety standards in Nigeria’s expanding CNG sector.

In an official statement released on its X account, PCNGI expressed deep regret over the incident and stressed that a thorough investigation was already underway. “We commiserate with those affected by this avoidable tragedy and are relieved that no lives were lost. Our preliminary inspection shows the cylinder in question was unapproved, welded, and modified for CNG use, which led to the explosion,” the statement read.

The initiative emphasized the importance of adhering to safety protocols in the handling of hydrocarbons and announced the upcoming launch of the Nigeria Gas Vehicle Monitoring System to further enhance safety in the industry. NIPCO, in its own statement, confirmed the findings, explaining that the explosion occurred when a vehicle with a fabricated, substandard cylinder arrived for refueling. “Our initial assessment revealed that the cylinder, which was not designed for CNG, exploded with approximately 4 SCM of gas,” NIPCO stated.

While investigations continue, the incident has fueled criticism from industry experts. Energy specialist Dotun Akingbade expressed concerns about NIPCO’s dual role in managing CNG refueling stations and vehicle conversions, warning that this could lead to a monopolization of the sector. “The government needs to restrict NIPCO’s involvement to gas stations only. Their control over vehicle conversion is unnecessary and poses the risk of creating a monopoly,” Akingbade argued.

Since its partnership with the Nigerian Gas Company Limited (NGC) in 2007, NIPCO has spearheaded CNG adoption in Nigeria, operating 15 CNG stations in Benin City alone. However, recent criticisms have emerged, with accusations of risky vehicle conversions and insufficient safety inspections. Salis Umeh, another industry expert, highlighted these concerns, accusing NIPCO of anti-competitive behavior. “NIPCO has been leveraging its influence to monopolize the CNG sector, forcing vehicle conversions at its stations and securing exclusive deals with the Ministry of Finance to keep gas prices artificially low, pushing out competitors,” Umeh said.

As the investigation unfolds, experts are calling for stricter regulations to prevent monopolistic practices and ensure safety within the CNG industry. They warn that without proper oversight, the growing market could become dominated by a single player, risking both public safety and industry competition.