NMDPRA Awards 10 Gas Distribution Licences to Boost Nigeria’s Gas Utilization

“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.

“The licences being issued today will support the ‘last mile’ expansion, crucial in completing an efficient and interconnected gas network across the country,” Ahmed said.

He noted that the newly awarded licences cover a cumulative gas distribution capacity of approximately 1.5 bscf/d, with over 1,200km of gas distribution pipeline network 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 monitor tariff setting and safety standards by the companies to ensure efficient and transparent operation of the Gas Distribution Network.

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 President Bola Tinubu’s Liquefied Petroleum Gas (LPG) penetration programme will enable gas to be piped directly to homes and industrial centers across the country.

With only about 25% of Nigerians currently using gas for cooking, this development is expected to have a significant impact on the country’s energy landscape.