NMDPRA to Accelerate Gas Distribution for Industrialisation
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says it will enforce strict compliance while accelerating gas distribution to drive industrialisation and lower production costs nationwide.
Mr Saidu Mohammed, Authority Chief Executive of the NMDPRA, made the disclosure on Friday in Port Harcourt during an inspection of petroleum and gas facilities in Rivers.
Mohammed said the authority was committed to engaging operators across the midstream and downstream segments while providing the necessary regulatory support to achieve desired outcomes.
He said the inspection of facilities formed part of the Federal Government’s commitment to the Decade of Gas initiative, aimed at maximising Nigeria’s vast gas resources.
According to him, expanding domestic utilisation requires robust distribution networks capable of delivering energy efficiently to industries and consumers.
“Distribution networks are critical to industrialisation because industries thrive when gas is available.
“Gas provides a cleaner and more efficient energy source that lowers production costs and ultimately reduces consumer prices,” Mohammed said.
He added that the Federal Government’s overarching goal was to deploy activities across the oil and gas value chain to drive industrial growth.
The NMDPRA chief said government priority was to deepen domestic gas utilisation alongside exports to strengthen the national economy.
He said the regulator would continue to support gas distributors and other midstream operators to ensure orderly expansion within transparent and clearly defined technical and commercial frameworks.
“Inspecting these facilities underscores government’s resolve to reposition the gas sector as a catalyst for industrial growth and national prosperity.
“Transparency remains central to our mandate under the Petroleum Industry Act (PIA),” he said.
Mohammed disclosed that the authority was in the process of mapping the entire country for the allocation of Gas Distribution Licences.
He said licensed gas distribution companies would operate within defined franchise areas to expand gas penetration nationwide.
According to him, where transmission pipelines are unavailable, the authority would deploy virtual gas distribution through Compressed Natural Gas (CNG).
“These operators may appear small, but they are vital to government’s aspiration of delivering gas to every corner of the country, particularly industrial hubs,” he said.
Mohammed noted that industrialisation remained key to national development and economic recovery, adding that government was working to enhance gas penetration through increased access to appliances.
He clarified that while the authority did not provide appliances such as gas cylinders, it ensured that facilities meet required standards from production to final consumption.
Mohammed warned that scarcity inevitably drove higher prices, stressing that increased supply was essential to achieving affordable energy costs.
According to him, the authority would deploy all regulatory powers granted under the PIA to support operators and ensure gas availability nationwide.
“Our goal is to deliver petroleum gas at the lowest possible cost, from production through transportation to distribution,” he concluded.
The delegation inspected facilities operated by Stockgap Fuels Limited, Matrix Petrochemical Limited and Central Horizon Gas Company Limited to assess their operational standards.
Speaking, Dr Stanley Ohamarije, Chairman of Stockgap Limited, said the company planned to inject 5 million gas cylinders into the market over the next five years.
Ohamarije said the investment would support government’s 10-million-cylinder target and deepen gas penetration, noting that Stockgap’s plant has a production capacity of 2,500 cylinders per hour.
He added that the initiative reflected the company’s commitment to improving access to gas for Nigerians and supporting national industrial growth.
On his part, Mr Kahide Alabi, Managing Director of Central Horizon Gas Company Limited (CHGC), said the firm was expanding gas infrastructure across the country to support industrialisation under the Federal Government’s Decade of Gas initiative.
Alabi said the visit by the NMDPRA would further encourage the company to scale up gas supply to industries. “Natural gas remains a major driver of industrial growth globally, CHGC is establishing facilities across Nigeria to support economic development,” he said.
He added that the company was expanding infrastructure to meet rising demand, attributing the progress to regulatory support through timely licences and approvals. Debt Office to Auction N900 Billion Reopened FGN Bonds
