The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has issued 10 Gas Distribution Licences (GDLs) to six companies as part of efforts to expand and deepen gas utilisation in Nigeria.

The GDL, as outlined in Sections 148–152 of the Petroleum Industry Act (PIA), grants exclusive rights to establish, construct, and operate gas distribution systems within designated Local Gas Distribution Zones (GDZs). The recipients of these licences include NNPC Gas Marketing Company, Shell Nigeria Gas Limited, NIPCO Plc., Central Horizon Gas Company, Falcon Corporation Ltd., and AXXELA.

At the award ceremony in Abuja on Tuesday, Farouk Ahmed, Chief Executive Officer (CEO) of NMDPRA, revealed that over 30 applications were submitted, and a thorough evaluation process was conducted in line with regulatory requirements.

“The licences being issued today will support the ‘last mile’ expansion, which is crucial for establishing a fully interconnected and efficient gas network across the country,” Ahmed said.

He added that the issuance of these 10 licences marks the first phase of the GDL regime, with further licences to be granted in subsequent phases to operators who meet the regulatory standards and demonstrate significant investment in gas distribution infrastructure.

500 Customer Stations, 1,200km of Gas Pipelines Covered

Ahmed highlighted that the licences cover a combined gas distribution capacity of 1.5 billion standard cubic feet (bscf) per day, with a 1,200km gas distribution pipeline network and over 500 customer stations.

He noted that the GDL regime is expected to drive the development of Nigeria’s domestic gas market by supplying energy to industries, special economic zones, embedded power generation, and compressed natural gas (CNG) mobility schemes.

“Piped natural gas (PNG) provides a continuous supply, is cost-effective, safer, and eliminates storage challenges,” Ahmed said. “These benefits will not only improve energy efficiency but also support Nigeria’s growing energy needs.”

To ensure transparency and efficiency in gas distribution, Ahmed stated that NMDPRA will oversee tariff regulation and safety standards for GDL operations. He also announced that the authority has begun processing additional licences under the Gas Distribution Regulations 2023.

Speaking at the event, Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas), reiterated the federal government’s commitment to implementing the PIA 2021 and ensuring broader gas accessibility.

Citing data from the African Development Bank (AfDB), Ekpo stressed the urgency of expanding clean energy access, noting that over 600,000 women and children die annually in Africa due to a lack of clean cooking solutions, while 1.2 billion women globally lack access to clean cooking.

“Continued exposure to carbon monoxide from traditional cooking fuels leads to severe air pollution, which is a leading cause of death among women and children,” Ekpo said.

He described the gas distribution licence issuance as a critical step in reducing reliance on traditional fuels, improving health outcomes, and advancing Nigeria’s energy transition goals.