Nigeria grants 10 long-term gas distribution licences

ABUJA, January 30, 2025 – Nigeria’s downstream regulator NMDPRA granted 10 gas distribution licences which are valid for 25 years, the regulator announced in its Gas Distribution Licence Award Ceremony on Tuesday.

CEO of NMDPRA, Farouk Ahmed, said that the awarding represents Phase I of a Gas Distribution Licensing regime. The first 10 licences will cover the areas of Lagos, Ibadan, Port Harcourt and Benin and cover the establishment, construction and operation of gas distribution networks. They will lead to the construction of a 1,200-kilometre pipeline network with over 500 customer stations that will supply 42.5 mcm (1.5 bcf) of gas per day.

Licences were issued to NNPC Gas Marketing Company, Shell Nigeria Gas, NIPCO, Central Horizon Gas Company, Falcon Corporation and AXXELA.

Regarding the importance of the licensing regime, Ahmed said, “We appreciate that this licence regime shall not only support the accelerated development of our domestic gas market but that it shall create opportunities for profitable investment for various classes of stakeholders, improve the socioeconomic impact of gas resources across Nigeria and support our national energy processing sectors.”

The licences are a part of the federal government’s last-mile gas expansion programme and its overarching efforts to make full use of the country’s vast gas resources. According to Ahmed, in 15 years, Nigeria will no longer need to use gas cylinders and gas trucks.

Photo courtesy of NMDPRA

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