The federal government yesterday awarded 10 gas distribution licenses to six Nigerian firms, a development it said marked a significant leap towards deepening gas utilisation in the country.
The beneficiary firms at the event held in Abuja were: The NNPC Gas Marketing Limited, Shell Nigeria Gas Ltd, AXXELA, NIPCO PLC, Central Horizon Gas Company and Falcon Corporation Limited.
Section 148 of the Petroleum Industry Act (PIA) 2021, mandates the relevant government agency to issue gas distribution licences to qualified individuals and organisations.
The licences provide an exclusive right for beneficiaries to establish, construct, and operate gas distribution systems and ensure the non-discriminatory distribution and sale of natural gas within designated local distribution zones.
Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, in an address at the event, said the move reaffirmed the government's commitment to sustainable development of Nigeria's vast gas resources.
The minister said the issuance of the licences was expected to increase access to gas for domestic and industrial use, driving economic growth and development nationwide, highlighting that access to affordable and sustainable energy, like gas, was key to unlocking Nigeria's entrepreneurial potential.
Underscoring how reliance on expensive and erratic fuels often disrupt business operations, Ekpo said that gas remains a more reliable, affordable, and sustainable energy source that can transform lives and empower businesses.
Quoting the President of the African Development Bank (AfDB), Dr. Akinwunmi Adeshina, the minister said that over 600,000 women and children die annually in Africa due to lack of access to clean cooking.
According to him, even more worrisome is that an estimated 1.2 billion women on the continent lack access to clean cooking, explaining that the continued exposure to carbon monoxide during cooking leads to very severe air pollution, which could cause death among women and children.
"The issuance of the gas distribution licence 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 licence holders, this initiative opens extensive opportunities across several key sectors," the minister said.
For energy-intensive industries, Ekpo explained that it will facilitate affordable and reliable energy supply to drive industrial growth and competitiveness, while for power generation, it will support cleaner and more efficient energy to enhance power availability across the nation.
Besides, Ekpo said that the programme will support clean cooking initiative and give women and youths access to clean cooking options, while promoting gas reticulation, which replaces gas cylinders as gas is piped to homes and businesses.
Aside from accelerating the adoption of Compressed Natural Gas (CNG) as a sustainable fuel alternative in transportation, Ekpo said the gas distribution initiative will promote industrial clusters that rely on natural gas as a cornerstone for economic activity.
"A thriving domestic gas market is crucial to achieving our ambitions under the Decade of Gas Initiative. The gas distribution licence framework is a strategic enabler for this vision by promoting accessibility and availability of gas," he added.
The challenge of expanding the reach of gas infrastructure to underserved areas and deepening gas consumption across residential, commercial, and industrial sectors, he said, will also be solved by the programme.
Furthermore, Ekpo stated that this will catalyse investments in pipelines, storage, and other critical infrastructure required to support gas distribution and reducing dependence on imported fuels while advancing energy security for all Nigerians.
"As we issue the gas distribution licences 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," Ekpo pointed out.