Godsent Ogbebor
The Federal Government has granted 25-year gas distribution licences to companies across 10 franchise areas, covering Lagos, Ibadan, Port Harcourt, and Benin. These licences will enable the establishment, construction, and operation of gas distribution networks in these regions.
The beneficiaries include major industry players such as NNPC, Shell, Central Horizon Gas Company, Falcon, Axxela, and NIPCO.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which issued the licences, revealed that over 30 companies applied. The awarded areas are those already connected to the Escravos-Lagos Pipeline System (ELPS).
At the award ceremony in Abuja, the Minister of State for Petroleum Resources (Gas), Hon. Ekperikpe Ekpo, emphasized that the initiative is part of the government’s “last mile” gas expansion programme, aimed at bringing gas supply closer to Nigerians.
“These licences grant exclusive rights to establish, construct, and operate gas distribution systems, ensuring non-discriminatory access to natural gas within designated zones. Today’s event reaffirms our commitment to fully implementing the Petroleum Industry Act (PIA) in line with the 2023 Gas Distribution Regulations,” Ekpo stated.
NMDPRA’s Authority Chief Executive, Engr. Farouk Ahmed, highlighted that the licences would support the distribution of over 1.5 billion cubic feet of gas daily through a 1,200km pipeline network and over 500 customer stations.
“This initiative will enhance our domestic gas market by supplying gas to industries, economic zones, power generation projects, and compressed natural gas (CNG) mobility schemes. It will also create investment opportunities, improve socio-economic benefits, and support Nigeria’s energy sector,” Ahmed said.
He added that the government is committed to fostering public-private partnerships to speed up gas infrastructure development. While the government provides regulatory oversight and funding through a mid- and downstream gas infrastructure fund, private companies will bring in investments and expertise to drive the projects.
Speaking at the event, NNPC Limited’s Group CEO, Mallam Mele Kyari, announced that the company and its partners plan to invest $500 million to establish five Liquefied Natural Gas (LNG) plants in Ajaokuta, Kogi State.
Represented by the Executive Vice President of Gas and Power, Ogunleye Olalekan, Kyari assured licence holders of adequate gas supply across the franchise zones.
He urged stakeholders and investors to support the Federal Government’s efforts to enhance gas supply and utilization, emphasizing that the sector presents “a huge opportunity for growth and development.”
