Mahmud Ghassemi, a member of Iran’s syndicate of compressed natural gas (CNG) businesses, said on Wednesday that a delegation from Iran will travel to Nigeria next week to sign a contract to supply of CNG service to the African country.
Ghassemi said works in Nigeria by Iranian companies will include the conversion of 1 million vehicles to CNG as well as the construction of 1,000 CNG stations in the African country.
He said Iran and Nigeria had agreed to a duration of seven years for the project that will be concentrated in three Nigerian cities.
The businessman said fueling stations planned for construction in Nigeria by Iranian companies will be of the LCNG type which feed on liquefied natural gas. He said some 70 plants will be set up in Nigeria for vehicle conversion services.
The remarks come days after Iranian and Nigerian oil ministers signed a memorandum of understanding to expand petroleum sector cooperation between the two leading oil producers in the world.
Iranian Oil Minister Javad Owji said after signing the deal that the provision of CNG services by Iran to Nigeria will be a main component of the agreement.
Owji said Nigeria will in return supply technical and engineering services to Iran’s natural gas liquefaction sector.
Nigeria launched an ambitious plan to convert its car fleet to gas last year as the country aims to cut reliance on imported fuel and use its excessive supplies of liquified natural gas.