Key points
- HBM Nigeria inaugurates a CNG mother station at its Mfamosing cement plant in Cross River.
- The facility can supply between 130 and 150 trucks daily and is expected to reduce CNG costs by more than 50 per cent.
- HBM plans to raise its Nigerian cement production capacity to about 17 million tonnes by December.
Main story
HBM Nigeria Plc, formerly Lafarge Africa Plc, has inaugurated a Compressed Natural Gas (CNG) mother station at its Mfamosing cement plant in Akamkpa Local Government Area of Cross River.
The facility, which can serve between 130 and 150 trucks daily, is expected to lower the cost and time involved in supplying CNG to transporters operating around the plant.
The Group Managing Director and Chief Executive Officer of HBM Nigeria, Mr Lolu Alade-Akinyemi, described the investment as part of the company’s strategy to improve operational efficiency, reduce costs and support cleaner energy use.
He said energy and logistics remained major cost drivers across the company’s value chain, making the shift towards CNG important to its long-term operations.
Alade-Akinyemi said the investment also reflected the company’s renewed growth strategy following its transition to HBM Nigeria Plc and new ownership.
He said the company was simultaneously expanding its cement production capacity across the country.
The Mfamosing plant currently produces five million metric tonnes of cement annually, with another three-million-tonne production line expected to be commissioned soon.
The company also plans to commission additional production lines at its Ashaka and Sagamu plants, which would raise its total installed production capacity in Nigeria to about 17 million metric tonnes by December.
According to Alade-Akinyemi, the expansion would create opportunities for communities hosting the company’s operations through skills acquisition, empowerment programmes and other livelihood initiatives.
He said the CNG station was part of broader investments aimed at strengthening HBM’s operations while supporting the transition to cleaner and more sustainable energy.
Meanwhile, Mr Emmanuel Usiakpor, Managing Director and Chief Executive Officer of Joza Global Logistics, said the facility would significantly improve the economics of using CNG for transporters.
Usiakpor said the station could reduce transportation costs by more than 50 per cent because trucks would no longer depend on CNG transported from distant mother stations.
He explained that transporters previously sourced gas from Port Harcourt, the nearest mother station, resulting in additional costs associated with transporting gas and equipment to Cross River.
The logistics operator said the new facility would also eliminate lengthy waiting periods experienced by transporters seeking CNG supplies.
He said some transporters previously waited between 10 and 15 days for CNG, partly because of the logistics involved in moving supplies from Port Harcourt.
Usiakpor said the new station would instead receive gas directly from the pipeline, reducing the distance and logistics costs involved in supplying the fuel.
He also highlighted the impact on truck turnaround time.
According to him, trucks can now be refuelled in about 15 minutes at the new facility, compared with more than an hour at many existing daughter stations where CNG is delivered using skids mounted on tankers.
The issues
The investment addresses two major cost pressures facing HBM’s operations and its transport partners: energy and logistics.
For transporters, sourcing CNG from distant locations increases both the cost of fuel and the time required to keep trucks operating.
The new mother station provides a direct supply point at the cement plant, potentially reducing those costs and improving the efficiency of cement distribution.
For HBM, the investment also comes as the company expands its production capacity, increasing the importance of reliable and cost-effective energy and logistics infrastructure.
The issues
The cement industry faces significant energy and logistics costs, making fuel efficiency an important factor in the cost of production and distribution.
For HBM Nigeria, the new CNG station is intended to address those costs while supporting the company’s transition towards cleaner energy.
The facility also tackles a specific logistical problem for transporters. Dependence on CNG supplied from distant mother stations increases both cost and waiting time.
Direct pipeline supply could therefore improve the economics of CNG-powered transportation around the Mfamosing plant.
The broader production expansion also indicates that the company is preparing to increase its presence in Nigeria’s cement market.
What’s being said
Alade-Akinyemi said the CNG investment would support HBM Nigeria’s efficiency, sustainability and growth objectives.
Usiakpor said the station could cut CNG-related transportation costs by more than 50 per cent and reduce truck refuelling time from more than an hour to about 15 minutes.
What’s next
HBM Nigeria plans to commission an additional three-million-tonne production line at Mfamosing and further production lines at its Ashaka and Sagamu plants.
The company expects those projects to raise its total installed Nigerian production capacity to about 17 million metric tonnes by December.
The CNG station will meanwhile serve transporters operating around the Mfamosing plant, with the company expecting improved access to gas and faster truck turnaround.
Bottom line
HBM Nigeria is combining energy investment with production expansion as it seeks to lower operating costs and increase its cement capacity.
The new CNG station could significantly reduce costs and delays for transporters, while the planned production lines would raise the company’s Nigerian capacity to about 17 million tonnes.
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