“The licences were issued to NNPC Gas Marketing Company, Shell Nigeria Gas Limited, NIPCO Plc, Central Horizon Gas Company, Falcon Corporation Ltd, and AXXELA”
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has awarded 10 Gas Distribution Licenses (GDLs) to six companies, marking a significant milestone in Nigeria’s quest to increase gas utilization and expansion.
The licences were issued to NNPC Gas Marketing Company, Shell Nigeria Gas Limited, NIPCO Plc, Central Horizon Gas Company, Falcon Corporation Ltd, and AXXELA.
According to Farouk Ahmed, Chief Executive of NMDPRA, the beneficiaries were selected from a pool of over 30 applicants based on defined requirements.
According to Ahmed, “The licenses being issued today will support the “last mile” expansion, which is essential for the delivery of a reliable and interconnected gas network across the nation.”
He noted that the newly obtained licenses have a total gas distribution capacity of roughly 1.5 billion cubic feet per day, which includes a network of more than 1,200 kilometers of gas distribution pipelines and over 500 customer stations.
The GDL regime aims to enable gas supplies to energy-intensive industries, industrial parks, special economic zones, embedded/captive power generation, Compressed Natural Gas mobility schemes, and other downstream gas utilization programmes.
Ahmed highlighted the benefits of Piped Natural Gas (PNG), saying it “provides continuous supply, is cost-effective, safer, and eliminates storage challenges”.
The authority will keep an eye on the companies’ tariff policies and safety standards to ensure the Gas Distribution Network’s efficient and transparent operation.
The Minister of State, Petroleum Resources (Gas), Ekperikpe Ekpo, noted that the licences will boost access to clean cooking, CNG mobility, and improve power generation.
He added that Gas will be delivered directly to homes and industrial complexes nationwide through President Bola Tinubu’s Liquefied Petroleum Gas (LPG) penetration program.
Source: Per Second News
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