The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has awarded 10 Gas Distribution Licences (GDLs) to six companies, including the NNPC Gas Marketing Company, Shell Nigeria Gas Limited, NIPCO Plc, Central Horizon Gas Company, Falcon Corporation Ltd, and AXXELA. The newly awarded licenses issued cover a cumulative gas distribution capacity of approximately 1.5 bscf/d (15.5 bcm/year) with over 1,200km of gas distribution pipeline network as well as over 500 customer stations.
The beneficiaries were selected from a pool of over 30 applicants in line with defined requirements. The GDL regime aims to enable gas supplies to energy-intensive industries, industrial parks, special economic zones, embedded/captive power generation, Compressed Natural Gas mobility schemes, and other downstream gas utilisation programmes. Since 2017, gas consumption has increased by 3%/year, reaching 21 bcm in 2023. The industry sector absorbed 37% of gas consumption in 2023 (up from 14% in 2010); 34% is used for power generation (48% in 2010) and 29% for the oil and gas sector (38% in 2010).