Gas Aggregation Licenses Will Boost Supply To Strategic Sectors Of Economy – NMDPRA Boss
Award of gas aggregation licences will boost supply to critical sectors that need gas to operate, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA)’s Chief Executive (ACE), Engr Farouk Ahmed has said.
Engr. Ahmed who stated this in Abuja while speaking on the significance of gas aggregation licences awards 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’s 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,” he stated.
Providing more insights into the Authority’s deepening the midstream sector of the Nigerian oil and Gas value chain and what has been achieved so far, the NMDPRA boss said: “Appropriate license regimes as prescribed by PIA are being emplaced such as a wholesale supply license which was launched by the Honourable 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.”
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 what to expect in the next few months from the NMDPRA 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 the emplacement of a new pricing regime for a strategic sector will promote the voluntary supply of gas and support the growth of the domestic market
According to him, 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.
