On Tuesday, the Nigerian government awarded 10 gas distribution licences (GDL) to six companies to improve the country’s gas utilisation drive.
The license gives exclusive right to establish, construct and operate a gas distribution system in a designated local Gas Distribution Zone (GDZ).
The beneficiary companies are NNPC Gas Marketing Limited , Shell Nigeria Gas Limited, Axxela, NIPCO Plc, Central Horizon Gas Company and Falcon Corporation Limited.
The GDL, as provided in Sections 148-152 of the Petroleum Industry Act (PIA), according to the government, is a licence that gives exclusive right to establish, construct and operate a gas distribution system in a designated local Gas Distribution Zone (GDZ) issued to qualified applicants to distribute gas at the ‘last mile’.
Speaking during the award ceremony in Abuja on Tuesday, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, explained that the initiative is designed to facilitate affordable and reliable energy supply to drive industrial growth, competitiveness and support for the generation of cleaner and more efficient energy to enhance power availability across the nation.
He added that this is expected to accelerate the adoption of Compress Natural Gas (CNG) as a sustainable fuel alternative in transportation in Nigeria.
“The issuance of the Gas Distribution License comes at a pivotal moment as we intensify efforts to harness the potential of gas as a critical resource for Nigeria’s energy transition and economic transformation. By empowering license holders, this initiative opens extensive opportunities across several key sectors,” Mr Ekpo said.
He said a thriving domestic gas market is crucial to achieving the country’s ambitions under the decade of gas initiative, adding that the gas distribution license framework is a strategic enabler for this vision by expanding the reach of gas infrastructure to underserved areas and deepening gas consumption across residential, commercial, and industrial sectors.
“As we issue the Gas Distribution License to qualified stakeholders today, we reaffirm our commitment to the sustainable development of Nigeria’s vast gas resources and to open up further investments in the gas space.
“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,” he added.
