NNPC, Shell, Nipco lead as Nigeria awards 10 gas licenses

The Guardian

By Kingsley Jeremiah, Abuja

Gas

The Nigerian government today awarded 10 licences for gas distribution across clusters in the South-Western and South-Southern regions of the country.

The move is part of efforts to drive domestic gas utilisation, ensuring gas reaches the last mile in homes and industries.

The Nigerian National Petroleum Company Limited (NNPC), Shell, and Nipco dominated the awards, which were issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

Out of 30 applications received, 20 were screened out, leaving the top 10 recipients to spearhead the first phase of such initiative aimed at the country’s gas expansion initiative.

Among the clusters, the Agbara, Ota, and Badagry Local Gas Distribution Zone (LDZ) will be operated jointly by NNPC and Shell, with a capacity of 102 million standard cubic feet per day (MMSCF/D). The Greater Lagos Industrial Area (GLIAS Local Gas Distribution Zone), with a capacity of 130 MMSCF/D, will be operated by NNPC and Gaslink.

The Ikorodu Local Gas Distribution Zone, operated by NNPC and Falcon, has a capacity of 25 MMSCF/D. Meanwhile, the Kara Bridge-Ibafo-Sagamu Interchange Local Gas Distribution Zone (LDZ), with a capacity of 150 MMSCF/D, will be managed by NNPC and Nipco.

The Lekki Free Trade Zone (FTZ) Local Gas Distribution Zone (LDZ) will be operated by NNPC and Nipco, with a capacity of 25 MMSCF/D. Additionally, the Ogere-Ibadan-Oluyole-Olorisako-Asuire-Ajoda Local Gas Distribution Zone, managed by NNPC and Nipco, has a capacity of 150 MMSCF/D.

In the South-South region, the Port Harcourt Cluster 2 Local Gas Distribution Zone (LDZ), operated by CHGC, has a capacity of 50 MMSCF/D. The Port Harcourt Cluster 1 Local Gas Distribution Zone (LDZ), managed by Shell, will operate with a capacity of 30 MMSCF/D.

The Ada Local Gas Distribution Zone (LDZ), with a capacity of 30 MMSCF/D, will be managed by NNPC. Finally, the Benin Local Gas Distribution Zone (LDZ) will be operated by Nipco, with a capacity of 20 MMSCF/D.

This initiative is a critical component of Nigeria’s gas master plan, which seeks to expand the domestic utilisation of gas.

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