NMDPRA Grants 10 Gas Distribution Licenses To NNPC, Others

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has awarded 10 Gas Distribution Licenses (GDLs) to six companies, including the Nigerian National Petroleum Company (NNPC) Limited Gas Marketing Company and Shell Nigeria Gas Limited, to expand gas distribution and utilisation across the country.

The licenses, issued during a ceremony in Abuja recently, grant exclusive rights to establish, construct, and operate gas distribution networks in designated local Gas Distribution Zones (GDZs) under the Petroleum Industry Act (PIA). Other beneficiaries include NIPCO Plc, Central Horizon Gas Company, Falcon Corporation Ltd., and AXXELA.

Speaking at the event, NMDPRA’s Chief Executive, Mr. Farouk Ahmed, noted that the recipients were selected from over 30 applicants based on strict regulatory requirements. He emphasised that the initiative is part of the first phase of the GDL regime and aims to strengthen Nigeria’s gas infrastructure.

“The licenses issued today will support the ‘last mile’ expansion needed to complete an efficient and interconnected gas network across the country. These operators have invested significantly in gas distribution infrastructure and have met the prescribed minimum requirements,” Mr. Ahmed stated.

The awarded licenses cover a cumulative gas distribution capacity of approximately 1.5 billion standard cubic feet per day (bscf/d), spanning over 1,200km of pipeline networks and serving more than 500 customer stations. This development is expected to provide steady gas supply to industries, economic zones, embedded power generation, and Compressed Natural Gas (CNG) mobility schemes.

Mr. Ahmed also assured that NMDPRA will regulate tariff setting and enforce safety standards to ensure transparent and efficient operations. He further revealed that additional licenses will be granted after necessary regulatory reviews are completed in line with the PIA and the 2023 Gas Distribution Regulations.

Honourable Minister of State for Petroleum Resources (Gas), Mr. Ekperikpe Ekpo, highlighted the broader impact of the GDL initiative, stating that it will enhance access to clean cooking solutions, CNG-powered transportation, and improved electricity generation.

“These licenses, issued under the Petroleum Industry Act, will unlock opportunities in power generation, clean cooking, CNG mobility, and energy parks. Through President Bola Tinubu’s LPG penetration program, gas will be piped directly to homes and industrial centres across the country,” he said.

Mr. Ekpo stated that gas reticulation will replace the traditional use of gas cylinders, reducing dependence on biomass fuels such as firewood and charcoal. This is expected to cut down harmful carbon emissions, which have been linked to severe respiratory illnesses among women and children.

Despite being a cleaner alternative, only 25 percent of Nigerians currently use gas for cooking. About 150 million people still rely on biomass, exposing them to severe air pollution and health risks. According to the African Development Bank (AfDB), over 600,000 women and children die annually across Africa due to a lack of access to clean cooking energy.