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FEDERAL GOVERNMENT ISSUES GAS DISTRIBUTION LICENSES TO PRIVATE FIRMS

The federal government has issued  Gas Distribution License through  the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

This according to the Minister of State, Petroleum Resources (Gas). Rt Hon. Ekperikpe Ekpo
marks a pivotal moment in Nigeria’s energy transition and economic transformation.
Honourable Ekpo pointed that  section 148 of the Petroleum Industry Act (PIA) 2021, mandates the NMDPRA to issue Gas Distribution Licenses to qualified individuals and organizations.

He said The Gas Distribution License initiative aims to address this challenge by promoting clean cooking options and providing access to reliable and affordable energy.

The license holders will have exclusive rights to establish, construct, and operate gas distribution systems, ensuring non-discriminatory distribution and sale of natural gas within designated local distribution zones.

This initiative is expected to open up extensive opportunities across various sectors, including energy-intensive industries, power generation, and compressed natural gas mobility.

The Gas Distribution License framework as part of it’s benefits is poised to play a strategic role in promoting accessibility and availability of gas, encouraging infrastructure development, and enhancing energy security for Nigerians.

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