Dantata and Halliriu

By Maduabuchi Nmeribeh/Kano

Kano State Investment Promotion Agency (KANINVEST) has signed a Memorandum of Understanding (MoU) with STATA Power Utility Nigeria Limited on the implementation of a customized gas programme in the state.

Speaking at the signing of the MoU at KANINVEST headquarters in Kano on Friday, 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 clean environment and creating job opportunities.

According to him, the programme, if implemented, would entail the supply of Compressed Natural Gas, CNG and the conversion of vehicles from using petroleum gas.

Mr Halliru explained 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.

“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 to improve their production and their services,” he said.

The DG disposed that the implementation of the partnership would be in about six months time after the company set 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 can establish their factories to establish the company and the location, location which has been already approved by them.

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

In his part, 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 industrialization in Kano.

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

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

Mr Dantata explained that the investment could be up to $15 million by STATA over the next 2 years for the deployment of the LCNG stations across the state.

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 5000 solar-powered tricycles and 10 motor vehicles for commercial purposes in the state.

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

The sister gas stations, with a 2 metric tons 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 would plan to expand to 20 stations within 5 years, adding that the project would create over 300 direct and 5000 indirect jobs for teeming youths in the second most populous state in the country.