The Federal Authorities, by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, has issued a 25-year fuel distribution licence to 10 firms for the institution, building and operation of fuel distribution networks.
The licenses issued, geared toward selling home fuel utilisation, cowl franchise areas in Lagos, Ibadan, Port Harcourt, and Benin Metropolis.
It’s to make sure that pure fuel reaches the final mile in houses and industries throughout clusters within the southwestern and southern areas of the nation.
On the award ceremony on Tuesday in Abuja, the Authority Chief Government of the NMDPRA, Ahmed Farouk, introduced that the Nigerian Nationwide Petroleum Firm Restricted, Shell, Nipco, Central Horizon Gasoline Firm, Falcon, and Axxela had been granted the licences.
He added that the areas awarded had been these already linked to the Escravos-Lagos Pipeline System.
Out of 30 functions acquired, 20 had been screened out, leaving the highest 10 recipients to spearhead the primary part of such an initiative aimed on the nation’s fuel growth initiative.
Among the many clusters, the Agrara, Ota, and Badagry Native Gasoline Distribution Zone will likely be operated collectively by NNPC and Shell, with a capability of 102 million commonplace cubic toes per day. The Higher Lagos Industrial Space (GLIAS Native Gasoline Distribution Zone), with a capability of 130 MMSCF/D, will likely be operated by NNPC and Gaslink.
The Ikorodu Native Gasoline Distribution Zone, operated by NNPC and Falcon, has a capability of 25 MMSCF/D.
Equally, the Kara Bridge-Ibafo-Sagamu Interchange Native Gasoline Distribution Zone, with a capability of 150 MMSCF/D, will likely be managed by NNPC and Nipco.
The Lekki Free Commerce Zone Native Gasoline Distribution Zone will likely be operated by NNPC and Nipco, with a capability of 25 MMSCF/D.
Moreover, the Ogere-Ibadan-Oluyole-Olorisako-Asuire-Ajoda Native Gasoline Distribution Zone, managed by NNPC and Nipco, has a capability of 150 MMSCF/D.
Within the South-South area, the Port Harcourt Cluster 2 Native Gasoline Distribution Zone, operated by CHGC, has a capability of fifty MMSCF/D.
The Port Harcourt Cluster 1 Native Gasoline Distribution Zone, managed by Shell, will function with a capability of 30 MMSCF/D.
The Ada Native Gasoline Distribution Zone, with a capability of 30 MMSCF/D, will likely be managed by NNPC.
Lastly, the Benin Native Gasoline Distribution Zone will likely be operated by Nipco, with a capability of 20 MMSCF/D.
Ahmed, in his keynote deal with, disclosed that the licenses would allow the distribution of over 1.5 billion cubic toes of fuel per day by a 1,200 km fuel pipeline community and greater than 500 buyer stations.
Ahmed acknowledged, “Ten licenses are being issued at present as a part of Part 1 of the Gasoline Distribution Licensing regime to operators who’ve invested considerably in growing fuel distribution infrastructures within the designated Gasoline Distribution Zones and have met the prescribed minimal necessities.
“A cumulative fuel distribution capability of roughly 1.5 bscf/d with over 1,200 km of fuel distribution pipeline community in addition to over 500 buyer stations are lined by the licenses being issued at present.
“This license regime holds a major alternative to assist the event of our home fuel market by the availability of fuel to our vitality and testing industries, industrial parks, particular financial zones, embedded captive energy technology, mobility CNG schemes, and some other downstream fuel utilisation programme.
“We respect that this license regime shall not solely assist the accelerated improvement of our home fuel market, however that it shall create alternatives for worthwhile funding for numerous courses of stakeholders, enhance the socio-economic impression of fuel assets throughout Nigeria, and assist our nationwide vitality processing sectors.”
Ahmed defined that the fuel distribution license regime “is predicted to put a strong basis for long-term development and prosperity, unlock the total potential of our pure fuel reserves, allow the event of latest and tech markets, and create new sources of income and employment for our nation.
“These licenses are anticipated to be a catalyst for investments. Pipeline pure fuel offers steady provide, is cost-effective, is safer, and eliminates storage challenges”, he added.
He acknowledged that NMDPRA will proceed to “encourage public-private partnership to hurry up the event of fuel infrastructure, with the federal government taking part in an important function in offering assist by regulatory oversight, a mid- and downstream fuel infrastructure fund that’s embedded underneath the authority, whereas the personal sector or personal firms will herald experience and investments wanted to drive the tasks ahead.”
The license regime, in keeping with him, shall not solely assist the accelerated improvement of Nigeria’s home fuel market but in addition create alternatives for worthwhile investments for numerous courses of stakeholders, enhance the socio-economic impression of fuel assets throughout Nigeria, and assist our nationwide vitality transition plans.
He additionally assured the authority’s dedication to proceed working assiduously in offering regulatory assist to business stakeholders and making certain that crucial fuel infrastructures are accomplished and commissioned.
Ahmed mentioned they embrace the OB3 river crossing, the AKK, and the fuel processing services throughout the gas-producing provinces of the nation.
He additional acknowledged that the authority has commenced the evaluate course of on the second revision of the Gasoline Transportation Community Code to construct on the successes of the primary revision and improve the efficiency of the community relating to strain stability, metering at each entry and exit factors, high quality of provide, and general operational effectivity.
He additionally mentioned the NMDPRA will periodically revise the fuel pricing and tariffing frameworks to make sure that the price of fuel stays truthful and aggressive, consistent with the provisions of the PIA.
Additionally talking on the occasion, the Minister of State Petroleum Sources (Gasoline), Hon. Ekperikpe Ekpo, mentioned the license regime, which is a part of the federal authorities’s “final mile” fuel growth programme, is predicted to carry fuel provide nearer to Nigerians throughout the nation.
Ekpo famous that the licenses present “an unique proper to determine, assemble, and function fuel distribution programs and make sure the non-discriminatory distribution and sale of pure fuel inside designated native distribution zones. Immediately’s occasion is a testomony to our dedication to implementing the PIA in full alignment with the Gasoline Distribution Rules of 2023.
He identified that the “issuance of the Gasoline Distribution License comes at a pivotal second as we intensify efforts to harness the potential of fuel as a crucial useful resource for Nigeria’s vitality transition and financial transformation.”
The minister knowledgeable that the continued publicity to carbon monoxide and lack of entry to scrub cooking has led to the loss of life of 600,000 girls and youngsters in Africa.
He mentioned much more worrisome is the truth that an estimated 1.2 billion girls within the continent lack entry to scrub cooking.
He mentioned, “By empowering license holders, this initiative opens intensive alternatives throughout a number of key sectors: Vitality-Intensive Industries: Facilitating reasonably priced and dependable vitality provide to drive industrial development and competitiveness.
“Energy Era: Supporting the technology of cleaner and extra environment friendly vitality to boost energy availability throughout the nation,” he acknowledged.
In the meantime, the Group Chief Government Officer of NNPC Restricted, Mele Kyari, has acknowledged that the corporate and its companions are investing $500 million to assemble the yet-to-be-commissioned 5 liquefied pure fuel crops in Ajaokuta, Kogi State, as a part of its efforts to spice up fuel distribution.
Kyari, who was represented on the occasion by Government Vice President, Gasoline and Energy, Ogunleye Olalekan, assured the license holders of an enough provide of fuel throughout the franchise zones.
He urged stakeholders, traders, and corporations working within the sector to assist the federal authorities’s plans to enhance fuel provide and utilisation, including that the fuel sector “is a large alternative house.”
