NMDPRA Begins Review of Gas License Holders

By Adedapo Adesanya

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) on Wednesday in Abuja, kicked off a two-day performance review session with companies currently holding gas distribution licences.

A statement by the regulator said the review was in compliance with the provisions of the Petroleum Industry Act (PIA), which mandates it to ensure and monitor performance parameters of the industry and the quality of service provided by licensed operators.

According to NMDPRA, the review focused on regulatory compliance, operational efficiency and Health, Safety, Environment, and Compliance (HSE&C) standards of the licensed gas distribution activities.

It reiterated that it would continue to work towards enabling proper gas utilisation in the country to meet domestic demands and boost the nation’s economy.

In January, as a way of increasing gas utilisation and expansion in the country, the NMDPRA awarded 10 Gas Distribution Licences (GDLs) to six companies, including a subsidiary of the Nigerian National Petroleum Company (NNPC) Limited.

The six beneficiary companies include the NNPC Gas Marketing Company, Shell Nigeria Gas Limited, NIPCO Plc, Central Horizon Gas Company, Falcon Corporation Ltd, and AXXELA.

The licenses issued under the Petroleum Industry Act were to help unlock opportunities in power generation, clean cooking, CNG mobility, and energy parks.

The licenses issued covered a cumulative gas distribution capacity of approximately 1.5 billion standard cubic feet per day with over 1,200km of gas distribution pipeline network as well as over 500 customer stations.