HBM NIGERIA EXPANDS CNG OPERATIONS WITH NEW 144,000-SCM FACILITY IN CROSS RIVER

HBM Nigeria Plc has commissioned a high-capacity Compressed Natural Gas facility at its Mfamosing Plant in Akamkpa Local Government Area of Cross River State, as the company intensifies efforts to reduce logistics expenses and transition towards cleaner and more efficient energy sources.

The facility, officially unveiled on August 31, 2026, is designed to support the company’s growing fleet operations and can initially provide fuel for as many as 150 trucks each day. It has an installed capacity of 144,000 standard cubic metres of CNG per day, positioning it as a major component of HBM Nigeria’s logistics and energy strategy.

The station has been configured for continuous, 24-hour operations and is equipped with two pumps and four dispensing points. According to the company, the arrangement is expected to reduce the amount of time trucks spend waiting for fuel, improve fleet availability and enable vehicles transporting products to complete their journeys more efficiently.

Speaking during the commissioning, HBM Nigeria’s Group Managing Director and Chief Executive Officer, Lolu Alade-Akinyemi, said energy and logistics represent significant costs for the company and its wider value chain. He explained that increasing the use of CNG would help create more efficient and cost-effective operations while supporting the Federal Government’s efforts to encourage the adoption of cleaner energy alternatives.

The company’s Logistics Director, Osaze Aghatise, said HBM Nigeria had already been using CNG in its logistics operations for about nine years. However, he explained that the newly commissioned facility represents a significant change in scale, moving the company’s CNG initiative beyond a limited programme towards full-scale deployment across its logistics operations.

HBM Nigeria is also planning a second phase of the project. The expansion, scheduled to become operational in October 2026, is expected to increase the station’s capacity to approximately 250 trucks per day, further strengthening the company’s ability to rely on CNG-powered transportation.

The investment is expected to have implications beyond HBM Nigeria’s internal operations, particularly for transport partners who depend on reliable access to CNG. A related report noted that the availability of the facility could substantially reduce transportation expenses and waiting periods previously experienced by truck operators seeking CNG supplies from distant locations.

The Cross River State Government welcomed the investment, with the Commissioner for Information and Orientation, Pastor Ekpeyong Cobhams, describing the development as consistent with the changing demands for more efficient energy sources. He also reaffirmed the state government's commitment to maintaining an environment capable of attracting and supporting private-sector investment.

The CNG project forms part of HBM Nigeria’s broader transformation programme following its emergence under a new name, ownership structure and renewed growth strategy. The company has also announced plans to increase cement production across its Nigerian operations, including further expansion at the Mfamosing facility.

Alade-Akinyemi said the company currently produces about five million metric tonnes of cement annually at Mfamosing, with another three-million-tonne production line expected to be commissioned. Additional production lines are also planned for its Ashaka and Sagamu operations, which the company expects will take its total installed production capacity in Nigeria to approximately 17 million metric tonnes by December 2026.

With the expansion of CNG infrastructure alongside its production plans, HBM Nigeria is positioning the initiative as part of a wider effort to control operating costs, improve logistics performance and increase the use of cleaner energy across its industrial activities.