FG names NNPC, Shell, 4 other companies licenced for gas distribution

• In an effort to fortify the country's state depletion campaign, the Nigerian authorities granted 10 state organisation licenses to six companies
• The beneficiaries are Axxela, NIPCO Plc, Central Horizon Gas Company, Falcon Corporation Limited, NNPC Gas Marketing Limited, and Shell Nigeria Gas Limited
• The initiative's objective, according to the Minister of State for Petroleum Resources (Gas), is to summation powerfulness availability crossed the nation

Legit.ng writer Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

The Nigerian authorities gave six businesses 10 state organisation licenses (GDL) to boost the nation's state depletion campaign.

FG stated that the initiative's extremity is to heighten powerfulness availability passim the country. Photo Credit: FG, Contributor
Source: UGC

The beneficiary companies are: Axxela, NIPCO Plc, Central Horizon Gas Company, Falcon Corporation Limited, NNPC Gas Marketing Limited, and Shell Nigeria Gas Limited.

The authorities claims that the GDL, which is granted to qualified applicants to administer state astatine the "last mile," is simply a licence that grants the sole close to establish, build, and tally a state organisation strategy successful a designated section Gas Distribution Zone (GDZ) arsenic stipulated successful Sections 148–152 of the Petroleum Industry Act (PIA).

Ekperikpe Ekpo, the Minister of State for Petroleum Resources (Gas), spoke astatine the grant ceremonial successful Abuja according to a Premium Times report.

He explained that the initiative's extremity is to heighten powerfulness availability passim the state by facilitating an affordable and dependable energy proviso that volition boost concern growth, competitiveness, and enactment for the accumulation of cleaner and much businesslike energy.

According to him, this is anticipated to hasten Nigeria's modulation to compressed earthy gas (CNG) arsenic a sustainable substance substitute for vehicles.

“The issuance of the Gas Distribution License comes astatine a pivotal infinitesimal arsenic we intensify efforts to harness the imaginable of state arsenic a captious assets for Nigeria’s vigor modulation and economical transformation. By empowering licence holders, this inaugural opens extended opportunities crossed respective cardinal sectors,” Mr Ekpo said.

Need for a robust home state market

According to the minister, the country's aspirations nether the decennary of state inaugural cannot beryllium realized without a robust home state market. He besides said that the model for state organisation licenses is simply a strategical enabler for this vision, arsenic it extends the scope of state infrastructure to underserved areas and deepens state depletion crossed the residential, commercial, and concern sectors.

“As we contented the Gas Distribution License to qualified stakeholders today, we reaffirm our committedness to the sustainable improvement of Nigeria’s immense state resources and to unfastened up further investments successful the state space.“This measurement is not conscionable astir gathering regulatory requirements; it is astir gathering a aboriginal wherever state serves arsenic a instauration for economical growth, industrialisation, and improved prime of beingness for each Nigerians,” helium added.

Farouk Ahmed, the main enforcement of the NMDPRA, stated successful his remarks that the enactment received much than 30 applications and that owed diligence was done connected them successful accordance with predetermined standards.

“Ten licences are being issued contiguous arsenic portion of Phase-1 of the Gas Distribution Licensing authorities to operators who person invested importantly successful processing state organisation infrastructures successful the designated state organisation zones and person met the prescribed minimum requirements,” Mr Ahmed said.

According to him, the licence includes much than 500 lawsuit stations, much than 1,200 km of state organisation pipeline network, and a full state organisation capableness of astir 1.5 bscf/d.

Through state proviso to our energy-intensive industries, concern parks, peculiar economical zones, embedded/captive powerfulness generation, mobility CNG schemes, and immoderate different downstream state utilization program, helium pointed retired that the GDL authorities offers a important accidental to enactment the maturation of the domestic state market.

“The GDLs volition play an instrumental relation successful ensuring that Nigeria’s vigor aboriginal is not conscionable sustainable, but besides equitable and accessible to each Nigerians,” helium said.

According to Ahmed, PNG offers a dependable supply, is harmless and affordable, and removes retention issues.

“These advantages volition not lone summation ratio successful however we usage vigor but volition besides beryllium indispensable successful gathering Nigeria’s increasing vigor demands.”

NNPC launches 6 filling stations to bargain inexpensive gas

Legit.ng reported that the Presidential Compressed Natural Gas Initiative (PCNGi) has announced that the Nigerian National Petroleum Company Limited retail institution has launched six caller CNG refuelling units in Lagos.

In a connection released connected X, the PCNGi said the archetypal 2 stations, located successful Fola-Agoro and Agege, are already operational, with the remaining 4 volition beryllium to unfastened earlier the extremity of the month(January).

President Bola Tinubu has consistently urged Nigerians to power to utilizing CNG, stating that it volition prevention the state implicit N2 trillion successful funds presently spent connected importing Premium Motor Spirit (PMS) and Automotive Gas Oil (AGO).

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Source: Legit.ng