The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), in a bid to expand gas utilisation and infrastructure in Nigeria, awarded 10 Gas Distribution Licences (GDLs) to six companies, including a subsidiary of the Nigerian National Petroleum Company Limited (NNPCL).
The licences were presented on Tuesday in Abuja to NNPC Gas Marketing Company, Shell Nigeria Gas Limited, NIPCO Plc, Central Horizon Gas Company, Falcon Corporation Ltd, and AXXELA.
Speaking at the ceremony, NMDPRA Chief Executive Farouk Ahmed said the selected beneficiaries emerged from over 30 applicants based on strict regulatory requirements.
“The licences issued today will facilitate ‘last mile’ gas distribution expansion, which is critical in building an efficient and interconnected gas network across Nigeria,” Ahmed stated.
He further disclosed that the awarded licences cover a combined gas distribution capacity of approximately 1.5 billion standard cubic feet per day (bscf/d), with a pipeline network spanning over 1,200km and serving more than 500 customer stations.
The GDL initiative aims to boost gas supply to industries, industrial parks, economic zones, embedded power generation, and Compressed Natural Gas (CNG) mobility schemes, enhancing downstream gas utilisation.
Ahmed also assured that NMDPRA would oversee tariff regulation and enforce safety standards to ensure efficient and transparent gas distribution.
He added that more licences would be issued following regulatory reviews and compliance with the Petroleum Industry Act (PIA) and Gas Distribution Regulations 2023.
Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, hailed the initiative as a step toward cleaner energy access, improved power generation, and expanded CNG mobility.
“These licences will unlock new opportunities in power generation, clean cooking, CNG mobility, and energy parks,” Ekpo said.
He also reiterated President Bola Tinubu’s commitment to expanding Liquefied Petroleum Gas (LPG) penetration, ensuring gas is piped directly to homes and businesses, replacing traditional gas cylinders.
