Ajaokuta Steel Company To Host CNG Project

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L-R: The Minister of Steel Development, Prince Shuaibu Audu and the permanent secretary, Dr. Mary Ogbe during the working visit to Ajaokuta Steel Plant.

The Minister of Steel Development, Prince Shuaibu Audu has proposed exploring the utilisation of the Ajaokuta Steel Company Limited (ASCL) for the Federal Government’s compressed natural gas (CNG) project. This initiative aims to support the Gas Initiative Agenda of the Bola Tinubu administration, by storing and producing CNG, while also mitigating the impacts of subsidy removal.

This development was revealed during the minister’s inaugural visit to the Ajaokuta Steel Company as part of the government’s plan to revitalise the struggling steel sector in Nigeria.

“Ajaokuta Steel Company’s engineering workshop presents a unique opportunity for the storage of Compressed Natural Gas in specialised CNG tanks. This innovative use of ASCL’s infrastructure promises to bolster the country’s energy sector and reduce dependency on traditional fossil fuels,” Shuaibu stated.

Additionally, ASCL’s machine workshop is poised to play a vital role by producing essential accessories for gas cylinders used in CNG-powered buses. This local production of components aligns perfectly with the President’s Gas Initiative Agenda, fostering self-sufficiency and contributing to the Nigerian economy.

The machine shop is well-prepared for the manufacture of various tools, implements, carriages, and spare parts. This expanded production capacity could lead to job creation and contribute to the growth of industries such as wheelbarrows, tricycle trucks (‘Keke’ NAPEP) and more.

The minister’s forward-thinking approach to leveraging the assets of Ajaokuta Steel Company Limited for the CNG project underscores the government’s commitment to sustainable energy solutions and economic development.

A statement by the special assistant on media and communications to the minister, Abdullahi Haruna, highlighted that as this initiative progresses, it holds the potential to transform Ajaokuta Steel Company Limited into a key player in Nigeria’s transition towards cleaner and more efficient energy sources.

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