Egypt is moving to tap into Nigeria’s fast-growing compressed natural gas (CNG) market, with Egyptian automotive gas company Cargas signalling plans to expand operations into the country and support ongoing efforts to scale gas-powered transportation.
The move follows a visit by a Cargas delegation to Nigeria as Cairo seeks to strengthen energy cooperation across African markets and position its petroleum firms for regional expansion.
Egypt’s Ministry of Petroleum and Mineral Resources said the initiative aligns with directives to deepen cross-border collaboration and create new commercial opportunities for Egyptian energy companies on the continent.
During the visit, Nigeria’s Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, met with Egypt’s Ambassador to Nigeria, Mohamed Fouad, and representatives of Cargas to discuss areas of cooperation centred on natural gas applications, particularly the deployment of CNG in Nigeria’s transport sector.
Ekpo said achieving the targets of Nigeria’s Presidential Compressed Natural Gas Initiative would require strong technical partnerships, operational collaboration and knowledge sharing.
He pointed to Egypt’s long-running experience in vehicle conversion and natural gas mobility, describing it as a model Nigeria could draw from as it pushes to reduce transport fuel costs and expand cleaner energy alternatives.
The minister also welcomed Egypt’s willingness to support the Nigerian market through technology transfer and technical expertise.
As part of the engagement, the Egyptian delegation held meetings with key Nigerian agencies overseeing energy, automotive development and local industry participation.
The discussions involved the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the National Automotive Design and Development Council (NADDC), and the Nigerian Content Development and Monitoring Board (NCDMB).
Talks focused on practical areas of cooperation, including the development of CNG retail infrastructure, vehicle conversion centres, local manufacturing of components and specialised training programmes to support wider natural gas adoption in Nigeria’s transport system.
Nigeria has accelerated its push for CNG adoption following the removal of petrol subsidy, positioning gas as a lower-cost alternative for motorists and commercial transport operators facing rising fuel prices.
Cargas, established in 1995 as Egypt’s first specialised automotive natural gas company, has built one of the country’s largest CNG networks. The company controlled about 41 per cent of Egypt’s market in 2025, supported by 56 conversion and maintenance centres nationwide.
Analysts say Egypt’s interest in Nigeria reflects the growing commercial potential of the country’s gas mobility market, where government-backed expansion plans, a large vehicle population and abundant natural gas reserves are attracting increasing regional and international attention.
SOURCE: sweetcrudereports.com
