Kano govt, STATA Power sign $15m MoU for customised gas programme

Kano State Investment Promotion Agency, KANINVEST, has signed a $15 million Memorandum of Understanding (MoU) with STATA Power Utility Nigeria Limited for the implementation of a customised gas programme in the state.

Making this known at the signing of the MoU at KANINVEST headquarters in Kano, the Director General of the agency, Muhammad Nazir Halliru, said the deal, worth $15 million, is a significant milestone towards creating a more conducive environment by reducing greenhouse gas emissions, keeping a healthier and cleaner environment, and creating job opportunities.

“The supply of the gas will go beyond only the vehicles but also supplying to industries and major companies that are using CNG or can opt to use it in order to improve their production and their services,” he said.

He explained that the programme, if implemented, would entail the supply of Compressed Natural Gas (CNG) and the conversion of vehicles from using petroleum gas.

Mr Halliru emphasised that the effort is to address 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,” he added.

Mr Halliru stated that the implementation of the partnership would be in about six months’ time after the company sets up the gas stations in the state.

“So we have 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 and the location, which has already been approved to them.

“They are also going to have additional incentives in terms of tax waivers as a pioneer investment,” he explained.

Earlier, the Chief Executive Officer of the company, Salman Dantata, expressed delight at the “groundbreaking” MoU signing, which according to him, would help in bringing down the cost of transportation and boost industrialisation in Kano.

“This initiative is in line with global trends towards cleaner energy, economic development, and environmental sustainability.

By transitioning from traditional fuel sources to compressed natural gas (CNG) for automobiles, this programme seeks to reduce transportation costs, improve air quality, reduce carbon emissions, and enhance energy efficiency across Kano State,” he said.

The investment could be up to $15 million by STATA over the next two years for the deployment of the LCNG stations across the state, he added.

According to him, the firm intends to invest in conversion kits and set up the conversion centre within the stations.

He said in the next year, the company would commence the provision of 5,000 solar-powered tricycles and 10 motor vehicles for commercial purposes in the state.

Mr Dantata explained that the mother station would be sited at the Tamburawa area in the Kura Local Government area of the state with a capacity of 110 metric tonnes a day.

The sister gas stations, with a 2 metric tonne capacity each, according to Mr Dantata, would be situated at Dalladi Nasidi, Maiduguri Road, IBB Road, Shagari Quarters, Cotton Gingery, Sharada, and Bechi quarters.

He disclosed that the firm plans to expand to 20 stations within five years, adding that the project would create over 300 direct and 5,000 indirect jobs for teeming youths in the second most populous state in the country.

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