The Federal Government, through the Nigerian Midstream and Downstream Petroleum Regulatory Authority, has issued a 25-year gas distribution licence to 10 companies for the establishment, construction and operation of gas distribution networks.
The licenses issued, aimed at promoting domestic gas utilisation, cover franchise areas in Lagos, Ibadan, Port Harcourt, and Benin City.
It is to ensure that natural gas reaches the last mile in homes and industries across clusters in the southwestern and southern regions of the country.
At the award ceremony on Tuesday in Abuja, the Authority Chief Executive of the NMDPRA, Ahmed Farouk, announced that the Nigerian National Petroleum Company Limited, Shell, Nipco, Central Horizon Gas Company, Falcon, and Axxela were granted the licences.
He added that the areas awarded were those already connected to the Escravos-Lagos Pipeline System.
Out of 30 applications received, 20 were screened out, leaving the top 10 recipients to spearhead the first phase of such an initiative aimed at the country’s gas expansion initiative.
Among the clusters, the Agrara, Ota, and Badagry Local Gas Distribution Zone will be operated jointly by NNPC and Shell, with a capacity of 102 million standard cubic feet per day. The Greater Lagos Industrial Area (GLIAS Local Gas Distribution Zone), with a capacity of 130 MMSCF/D, will be operated by NNPC and Gaslink.
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.”
The minister informed that the continued exposure to carbon monoxide and lack of access to clean cooking has led to the death of 600,000 women and children in Africa.
He said even more worrisome is the fact that an estimated 1.2 billion women in the continent lack access to clean cooking.
