The Federal Government of Nigeria has issued 10 gas distribution licenses to six top-tier companies, marking a significant milestone in deepening gas utilisation in the country. The beneficiary firms include NNPC Gas Marketing Limited, Shell Nigeria Gas Ltd, AXXELA, NIPCO PLC, Central Horizon Gas Company, and Falcon Corporation Limited.
Speaking at the license presentation event in Abuja, Nigeria’s capital, the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, described the move as a reaffirmation of the government’s commitment to the sustainable development of Nigeria’s vast gas resources.
The Minister praised President Bola Ahmed Tinubu’s visionary leadership, which enabled the license issuance. He also commended the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA) for its regulatory reforms under the leadership of Authority Chief Executive, Mr. Farouk Ahmed.
Axxela receives Gas Distribution Licenses for Gaslink and CHGC
We are delighted to have been awarded Gas Distribution Licenses for Gaslink Nigeria Limited in partnership with NNPC Gas Marketing Limited for the Greater Lagos Industrial Area (GLIA) Local Gas Distribution Zone (LDZ)… pic.twitter.com/9RDHCow6WC— Axxela (@AxxelaGroup) January 29, 2025
According to Ekpo, “This step is not just about meeting regulatory requirements; it is about building a future where gas serves as a foundation for economic growth, industrialisation, and improved quality of life for all Nigerians.”
The Minister emphasised that access to affordable and sustainable energy, like gas, is key to unlocking Nigeria’s entrepreneurial potential. “Our president gave gas its unique identity and has enabled several opportunities in the gas space. The gas industry has expanded rapidly in terms of business opportunities and governmental directives because of President Bola Ahmed Tinubu’s crucial position.”
The licenses were issued in accordance with Section 148 of the Petroleum Industry Act (PIA) 2021. This move is part of the government’s broader efforts to implement the PIA and Gas Distribution Regulations of 2023.
The initiative is expected to create opportunities across several key sectors, including:
Energy-intensive industries
Power generation
Clean cooking initiatives
Gas reticulation
Compressed natural gas (CNG) mobility
Energy parks and special economic zones
Ekpo stated that these opportunities align with the government’s vision of “Gas to Prosperity,” where natural gas plays a transformative role in fostering industrialisation, creating employment opportunities, and generating revenue for sustainable national development.
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