Oyo Pacesetter Transport Service Begins Construction of First CNG Station

The Oyo State Pacesetter Transport Service (PTS) has commenced the construction of its first Compressed Natural Gas (CNG) station, marking a significant milestone in Governor Seyi Makinde’s drive to enhance energy security, reduce fuel costs, and improve the state’s transport infrastructure.

The project, which is being executed under a 20-year public-private partnership with Atlas Core Energy and Logistics Limited, is expected to be completed by the end of 2025 and become operational in January 2026.

During an inspection tour on Thursday, the Sole Administrator of PTS, Hon. Dr. Dikko Salami, described the project as a strategic move to ensure the agency’s self-sufficiency while expanding revenue opportunities.

CNG is much cheaper than traditional fuels. Investing in this station reduces our fleet’s operating costs and positions PTS as a key player in the transport sector’s energy transition,” said Dikko.

He highlighted that the CNG station would address long-standing challenges faced by PTS, particularly the delays caused by the need to refuel in Lagos, where buses often queue for extended periods before heading back to Ibadan.

“Our buses operate on a strict schedule – 7am, 10am, 1pm, and 4pm. But delays at gas stations in Lagos disrupt this timing. With 30 CNG buses already and plans to scale up to 60 by year-end, a local refueling solution has become critical,” he added.

The CNG station is being built within the PTS yard, ensuring direct access to fueling for the growing fleet. Beyond internal use, Dikko revealed plans to commercialize CNG conversion services for the private sector, including banks, civil servants, and logistics companies.

“We see huge potential in CNG conversion. Many private vehicle owners are seeking cost-effective alternatives to petrol and diesel. We’ll offer vehicle conversions and provide them with reliable gas supply right here in Ibadan,” he said.

According to Dr. Dikko, this is the first project of its kind in Oyo State’s history, aligning with Governor Makinde’s broader vision for sustainable energy and innovative public service delivery.

“It’s not just a gas station – it’s a solution provider for the people of Oyo State. From reducing fuel costs to creating jobs and attracting business, this initiative is about building a self-sufficient, forward-looking transport system,” he noted.

PTS, under Dikko’s leadership, has already made strides toward financial independence, paying staff salaries internally and exploring diverse revenue channels.

“All we want is to expand our revenue stream and reduce dependence on the government. This partnership with Atlas Core Energy is a major step in that direction,” he concluded.

The CEO of Atlas Core Energy and Logistics, Dr. Emmanuel Owoade, is leading the private sector end of the project. The partnership aims to ensure not only operational success but long-term sustainability that will outlive the current administration.