. Targets N1.8bn annual revenue
The Federal Government through the Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA) will on Tuesday, launch the first phase of the Gas Distribution License (GDL) award in Abuja.
The project which is being Implemented in line with provisions of the Gas Distribution Regulations 2023, is a fulfillment of Petroleum Industry Act (PIA) 2021 sections 125-126, 111, 148-152 and many others, will be hosted by the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo.
The GDL zone covers 11 states and four geographical zones of the country.
The Authority Chief Executive, Engr. Farouk A. Ahmed signs the Gas Distribution Licenses
The licensing award will unlock extensive gas opportunities for the energy intensive industrial sectors, power generation, CNG mobility, energy parks and special economic zones in the country.
It also aim to Supports the socio-economic development of Nigeria through employment, revenue and sustainable development of our gas resource, enhances the growth of the domestic gas market through the deepening of gas consumption, promoting the availability / accessibility of gas and accelerating the development of gas infrastructures (pipelines, city-gates, stations etc.) with targeted annual income of N1.8 billion
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According to the Authority’s Director, Public Affairs Department, George Ene-Ita, the operating gas distribution systems have an installed natural gas distribution capacity of approximately 1.5 bscf/d, 1281.978 Km of installed pipeline system and currently supplying over 600 customers
“The GDL has an exclusivity right of 25 years”, he stated.
Ene-Ita listed the key requirements of GDL to include natural gas availability, Connectivity with an existing or proposed Natural gas transmission pipeline system for supply of wholesale gas to the city gate, Potential demand for the gas distribution license & economic viability
He explained that prospective investors must submit a distribution development plan, Payment of statutory fees, Integration of mobility CNG scheme in the GDZ development plan.
The scheme are projected to boost employment opportunities expand opportunities at the retail end of the value chain, enhance mobility CNG scheme by expanding access & distribution across the country.
