FG issues gas distribution Licenses to boost Energy transition

FG issues gas distribution Licenses to boost Energy transition

CHIGOZIE AMADI

The Honourable Minister of State, Petroleum Resources (Gas), Rt Hon. Ekperikpe Ekpo, has announced the issuance of the Gas Distribution License, a pivotal moment in the country’s energy transition and economic transformation.

Speaking at the Gas Distribution License Ceremony by the NMDPRA in Abuja, the Minister said the license aims to harness the potential of gas as a reliable, affordable, and sustainable energy source. This move, he said, is expected to transform lives, empower businesses, and drive industrial growth.

According to the Minister, President Tinubu’s leadership vision for gas has expanded business opportunities and governmental directives in the gas space.

“President Bola Ahmed Tinubu – GCFR, has shown visionary leadership in making today’s ceremony possible. Our president gave gas its unique identity and has enabled several opportunities in the gas space. The gas industry has expanded rapidly in terms of business opportunities and governmental directives because of Mr. President’s crucial position”

“As you may know, section 148 of the Petroleum Industry Act (PIA) 2021, mandates the NMDPRA to issue Gas Distribution Licenses to qualified individuals and organizations. This provides an exclusive right to establish, construct, and operate gas distribution systems and ensure the non-discriminatory distribution and sale of natural gas within designated local distribution zones”.

Hon Ekpo affirmed that the Gas Distribution License will promote accessibility and availability of gas, encourage infrastructure development, enhance energy security, and reduce dependence on imported fuels.

“A thriving domestic gas market is crucial to achieving our ambitions under the Decade of Gas Initiative. The Gas Distribution License framework is a strategic enabler for this vision by promoting the Accessibility and Availability of Gas; Expanding the reach of gas infrastructure to underserved areas and deepening gas consumption across residential, commercial, and industrial sectors.

The Minister thanked the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for their dedication and leadership in driving regulatory reforms.

This development is a significant step towards building a future where gas serves as a foundation for economic growth, industrialization, and improved quality of life for all Nigerians.
In his keynote address,

In his keynote address, Faruk Abubakar Ahmed, the Authority Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), acknowledged the President’s transformative leadership, which had, within the last two years, implemented policies that had revolutionized the petroleum industry.

According to him, the creation of a fully liberalized market ensured an adequate supply of petroleum products across the nation. New investments in the fuel supply value chain were promoted, and Nigeria was established as a net exporter of petroleum products, poised to become an energy hub in the region.

Ahmed spoke on the downstream gas sectors, which were not only recovering from years of stagnation but also experiencing a revival of investor confidence. Strategic policies and regulatory improvements had driven this growth.

NNPC, Shell, and Nipco dominated the awards issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

Notable allocations include:
• Agrara, Ota, and Badagry Zone (102 MMSCF/D) – NNPC and Shell.
• Greater Lagos Industrial Area Zone (130 MMSCF/D) – NNPC and Gaslink.
• Ikorodu Zone (25 MMSCF/D) – NNPC and Falcon.
• Kara Bridge-Ibafo-Sagamu Zone (150 MMSCF/D) – NNPC and Nipco.
• Lekki Free Trade Zone (25 MMSCF/D) – NNPC and Nipco.
• Ogere-Ibadan Zone (150 MMSCF/D) – NNPC and Nipco.
• Port Harcourt Cluster 1 (30 MMSCF/D) – Shell.
• Port Harcourt Cluster 2 (50 MMSCF/D) – CHGC.
• Ada Zone (30 MMSCF/D) – NNPC.
• Benin Zone (20 MMSCF/D) – Nipco.