The Federal Government Tuesday, issued 25-years gas distribution licences to companies covering 10 franchise areas in Lagos, Ibadan, Port Harcourt and Benin for the establishment, construction and operations of gas distribution networks.
Benefiting companies include NNPC, Shell, Central Horizon Gas Company, Falcon, Axxela and NIPCO.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, which issued the licences said it received over 30 applications from companies, adding that areas awarded were those already connected to the Escravos-Lagos Pipeline System, ELPS.
Speaking at the award ceremony in Abuja, the Minister of State, Petroleum Resources (Gas), Hon. Ekperikpe Ekpo said the licence regime which is part of the “last mile” gas expansion programme of the Federal Government is expected to bring gas supply closer to Nigerians across the country.
Ekpo noted that the licences provide “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. Today’s event is a testament to our commitment to implementing the PIA in full alignment with the Gas Distribution Regulations of 2023.
He pointed out that the “issuance of the Gas Distribution License comes at a pivotal moment as we intensify efforts to harness the potential of gas as a critical resource for Nigeria’s energy transition and economic transformation”.
Also, speaking at the event, Group CEO, NNPC Limited, Mallam Mele Kyari disclosed that as part of efforts to boost gas distribution, the company and its partners would be investing about $500 million to set up five Liquefied Natural Gas plants in Ajaokuta, Kogi State. (Vanguard)
