The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has issued gas distribution licences to six companies, a move aimed at expanding Nigeria’s gas supply and making energy more accessible to industries and households.
The companies that received the licences include:
- NNPC Gas Marketing Company
- Shell Nigeria Gas Limited
- NIPCO Plc
- Central Horizon Gas Company
- Falcon Corporation Ltd
- AXXELA
What This Means for Nigeria
These licences allow the companies to build and operate gas distribution networks in specific areas. Together, they will handle about 1.5 billion standard cubic feet of gas per day, with over 1,200 kilometres of pipelines and more than 500 customer stations.
A Step Towards Affordable Energy
According to Farouk Ahmed, CEO of NMDPRA, this move is a big step towards ensuring steady and affordable gas supply across Nigeria.
“Expanding the country’s gas network will provide reliable energy to industries and homes, helping to reduce costs and improve efficiency,“ he said.
Cleaner Energy, Healthier Homes
The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, also highlighted the health benefits of using more gas.
“Many Nigerians still rely on firewood and charcoal for cooking, which causes indoor air pollution and serious health risks. Expanding gas supply will help prevent thousands of deaths linked to smoke inhalation,“ he explained.
The Bigger Picture
This development aligns with the Nigerian government’s commitment to fully implementing the Petroleum Industry Act (PIA) 2021, which seeks to improve the country’s energy sector and make gas more widely available.
For Nigerians, this could mean cheaper cooking gas, better electricity supply, and a boost for industries relying on gas to power their operations.
With these licences in place, all eyes will be on how quickly these companies can roll out their distribution networks and bring affordable gas to homes and businesses across the country.
