NMDPRA grants gas distribution licences
Expansion of gas infrastructure in Nigeria
Enhancing gas utilisation in Nigeria
On January 28, 2025, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) awarded 10 Gas Distribution Licences (GDLs) to six companies. This move aims to boost gas utilisation and expand distribution across Nigeria. The beneficiary companies include NNPC Gas Marketing Company, Shell Nigeria Gas Limited, NIPCO Plc., Central Horizon Gas Company, Falcon Corporation Ltd., and AXXELA.
The GDL grants exclusive rights to set up, build, and operate gas distribution systems within designated Gas Distribution Zones (GDZs), as stated in Sections 148-152 of the Petroleum Industry Act (PIA).
This initiative plays a key role in the ‘last mile’ expansion, which is essential for creating an efficient and connected gas network. Together, these licences cover about 1.5 billion standard cubic feet of gas per day. They include over 1,200 km of pipelines and more than 500 customer stations. This expansion opens up major opportunities for energy-intensive industries, industrial parks, special economic zones, power generation, and Compressed Natural Gas mobility schemes.
To ensure smooth operations, the NMDPRA will oversee tariff settings and safety standards. More licences are currently under review, with new approvals expected after regulatory assessments and compliance checks under the PIA and Gas Distribution Regulations 2023.
This strategic step reinforces Nigeria’s commitment to growing its domestic gas market and meeting rising energy demands.
