NMDPRA: Gas Aggregation Licenses Will Boost Supply To Strategic Sectors

Authority Chief Executive (ACE), Engr. Farouk Ahmed

By Gift Eguavoen

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), has said awarding gas aggregation licences will boost supply to critical sectors that need gas to operate.

This was stated by Authority Chief Executive (ACE), Engr. Farouk Ahmed, in Abuja, while speaking on the significance of gas aggregation licences awards.

He explained that the exercise will be done in strict compliance with key provisions of the Petroleum Industry Act (PIA) for the domestic gas sector on the activation of gas aggregation role in enabling reliable gas supply for the strategic sectors of the domestic market

“This will further strengthen the Nigerian gas sector through a structured growth of the domestic gas market. It is also a delivery of Mr. President promises of the hope agenda in so many ways including reformation of the economy for delivery of sustained inclusive growth, unlocking energy and natural resources for sustainable development and accelerating diversification through industrialization,” Ahmed stated.


“Appropriate license regimes as prescribed by the PIA are being emplaced such as a wholesale supply license which was launched by the Minister of State for Petroleum – Gas. The Gas processing license. The gas Transportation Pipeline License and the Gas Aggregation License that is the first in our industry,” Ahmed added while providing more insights into the Authority’s deepening of the midstream sector, of the Nigerian oil and gas value chain and what has been achieved so far

Furthermore, he disclosed that strategic collaboration frameworks have been emplaced for continuous engagement with all the relevant stakeholders while regulations are being administered for appropriate enablement of the sector.

On the NMDPRA’s short term plans in the gas sector, Engr. Ahmed hinted that all outstanding gas sector related license regimes will be emplaced such as gas distribution license, gas retail license and bulk storage license.

He maintained that emplacement of a new pricing regime for strategic sector that will promote voluntary supply of gas and support growth of the domestic market, while disclosing that the industry should expect to see the release of revised Nigerian Gas Transportation Network code as well as continuous strategic stakeholder collaboration and industry enablement in investment into the sector.

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