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Gas Industrialisation Key To Economic Recovery — NMDPRA

The Federal Government has reiterated that gas industrialisation remains a cornerstone of Nigeria’s economic recovery strategy, as the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) intensifies regulatory enforcement and accelerates gas distribution nationwide.

The Chief Executive of the NMDPRA, Engr. Saidu Mohammed, stated this in Port Harcourt, Rivers State, recently, during an inspection tour of petroleum and gas facilities operated by companies across the midstream and downstream sectors.

Mohammed said the authority is committed to strict compliance with regulatory standards while engaging industry operators to deepen domestic gas utilisation, drive industrial growth, and reduce production costs for businesses.

According to him, the inspection aligns with the Federal Government’s Decade of Gas initiative, which seeks to fully harness Nigeria’s vast gas reserves to support industrialisation, job creation, and sustainable economic growth.

He explained that robust gas distribution networks are critical to expanding domestic utilisation, noting that industries depend on reliable and affordable energy to remain competitive.

“Industries thrive when gas is available. Gas is a cleaner and more efficient energy source that lowers production costs and ultimately reduces consumer prices,” Mohammed said.

The NMDPRA chief added that the Federal Government’s broader objective is to deploy activities across the oil and gas value chain to stimulate industrial development and strengthen the national economy.

He assured that the authority would continue to support gas distributors and other midstream operators to ensure orderly sector expansion within transparent technical and commercial frameworks, in line with the provisions of the Petroleum Industry Act (PIA).

Mohammed said the ongoing inspection of gas facilities reflects the government’s determination to reposition the gas sector as a catalyst for industrial growth and national prosperity, stressing that transparency remains central to the regulator’s mandate.

He disclosed that the NMDPRA is currently mapping the entire country for the allocation of Gas Distribution Licences, explaining that licensed companies will operate within defined franchise areas to accelerate gas penetration nationwide.

He added that in locations where transmission pipelines are unavailable, the authority will deploy virtual gas distribution through Compressed Natural Gas (CNG) to ensure industries and consumers are not excluded from access to gas.

“These operators may appear small, but they are critical to our aspiration of delivering gas to every corner of the country, particularly industrial hubs,” he said.

Mohammed warned that scarcity inevitably drives higher energy prices, noting that increased gas supply remains essential to achieving affordable costs for both industries and households.

While clarifying that the authority does not supply gas appliances such as cylinders, he said it ensures that all facilities meet safety and quality standards from production to final consumption.

“Our goal is to deliver petroleum gas at the lowest possible cost — from production through transportation to distribution — and we will deploy all regulatory powers under the PIA to support operators and ensure nationwide availability,” he added.

During the inspection tour, the NMDPRA delegation visited facilities operated by Stockgap Fuels Limited, Matrix Petrochemical Limited, and Central Horizon Gas Company Limited to assess operational standards and regulatory compliance.

Speaking, the Chairman of Stockgap Fuels Limited, Dr. Stanley Ohamarije, said the company plans to inject five million gas cylinders into the market over the next five years to support the Federal Government’s ten-million-cylinder target.

He said Stockgap’s cylinder plant, with a production capacity of 2,500 cylinders per hour, would significantly deepen gas penetration and improve access to cleaner energy nationwide.

On his part, the Managing Director of Central Horizon Gas Company Limited, Kehinde Alabi, said the firm is expanding gas infrastructure across Nigeria to support industrialisation under the Decade of Gas initiative.

Alabi said the visit by the NMDPRA would further encourage the company to scale up gas supply to industries, noting that natural gas remains a key driver of industrial growth globally.

He added that the company’s expansion drive has been supported by regulatory backing through timely licences and approvals.

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