The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has awarded 10 Gas Distribution Licenses (GDLs) to six companies, marking a significant step toward expanding gas utilization across the country. The licenses were officially presented in a ceremony held on Tuesday in Abuja.
The six companies receiving the licenses include the NNPC Gas Marketing Company, Shell Nigeria Gas Limited, NIPCO Plc, Central Horizon Gas Company, Falcon Corporation Ltd, and AXXELA. These companies were selected from a pool of over 30 applicants, based on their ability to meet the defined criteria set by the NMDPRA.
Farouk Ahmed, the Chief Executive of the NMDPRA, explained that the licenses are designed to support the “last mile” expansion, which is crucial for completing an efficient and interconnected gas network throughout Nigeria. “These ten licenses are part of Phase one of the Gas Distribution License regime, granted to operators who have made significant investments in developing gas distribution infrastructures and met the prescribed minimum requirements,” he said.
The new licenses cover a cumulative gas distribution capacity of approximately 1.5 billion standard cubic feet per day (bscf/d) and involve over 1,200 kilometers of gas distribution pipeline networks, as well as more than 500 customer stations. These initiatives are expected to play a key role in supporting energy-intensive industries, industrial parks, special economic zones, and other downstream gas utilization programs.
Ahmed highlighted the advantages of Piped Natural Gas (PNG), which provides a continuous supply, is cost-effective, safer, and eliminates storage challenges. He stressed that these benefits would increase efficiency in energy usage, helping to meet Nigeria’s growing energy demands.
The NMDPRA plans to monitor the companies’ adherence to tariff setting and safety standards to ensure the efficient and transparent operation of the Gas Distribution Network. Ahmed also announced that additional licenses will be issued soon, following necessary regulatory reviews and the fulfillment of provisions under the Petroleum Industry Act (PIA) and the Gas Distribution Regulations of 2023.
Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, also spoke at the event, emphasizing the impact of the new licenses on access to clean cooking, Compressed Natural Gas (CNG) mobility, and improved power generation. He noted that the licenses, issued under the PIA, would unlock numerous opportunities in these sectors.
Ekpo further highlighted President Bola Tinubu’s Liquefied Petroleum Gas (LPG) penetration program, which aims to pipe gas directly to homes and industrial centers across the country. He explained that gas reticulation, replacing traditional gas cylinders, would contribute to enhancing access to energy and improving the quality of life for many Nigerians.
