NMDPRA To License Gas Distributors To Connect Industries To Pipeline Network

By Joycelyn Ellakeche Adah

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is set to launch a gas distribution licensing round aimed at attracting investors to expand pipeline networks and connect more industries to natural gas.

The Chief Executive Officer of the authority, Rabiu Abdullahi Umar, disclosed this in an interview at ADIPEC 2026 in Abu Dhabi, saying the initiative would help industrial clusters access gas directly and reduce dependence on diesel for production.

Umar said the regulator was mapping industrial clusters across the country to identify where gas infrastructure could be developed to bring energy supply closer to manufacturers and other industrial users.

He said the plan was to encourage production closer to markets, reducing the cost and distance involved in transporting finished goods across the country.

“We are looking at the whole country to identify industrial clusters and how people can pipe gas to their industries and reduce the utilisation of diesel, for example. That will mean production is going to move closer to markets.

” Today, you might have someone producing in Lagos and transporting goods across the country, a thousand kilometres or more. Gradually, we want to see more production happening closer to the market,” he said.

According to him, the distribution plan would accommodate different forms of gas delivery, including compressed gas, liquefied gas and direct pipeline supply, depending on the needs and location of industrial users.

Umar said the authority had also taken steps to strengthen confidence in the gas transportation system through a revision of the network code, which he said was launched a few weeks before the interview.

He explained that the revised framework was designed to give gas suppliers greater certainty that volumes injected into the pipeline network would be delivered to their intended destinations.

“A few weeks ago, we launched the revision of our network code, which allows people to put in their gas and have the certainty that they will get their gas at the end of the pipeline.

“The second thing we are doing is identifying industrial clusters and how people can pipe gas to their industries.”

He said improved access to transportation infrastructure and a credible regulatory framework would be important in attracting investors into the distribution segment.

The planned licensing round, he added, would provide an opportunity for credible investors to participate in developing the networks required to expand gas access across the country.

Umar said the combined effect of the network code revision, industrial cluster mapping and new distribution licences could double or triple Nigeria’s current level of gas utilisation.

He stressed that expanding distribution infrastructure was essential to ensuring that the country’s gas resources translated into lower energy costs for businesses and increased industrial activity.