The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has granted 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. These newly awarded licenses collectively authorize a total gas distribution capacity of approximately 1.5 billion standard cubic feet per day (bscf/d), equivalent to 15.5 billion cubic meters per year (bcm/year). The licenses also cover an extensive gas distribution infrastructure, including a pipeline network spanning over 1,200 kilometers and more than 500 customer stations.
The recipients of these licenses were carefully chosen from a pool of over 30 applicants, following strict selection criteria. The GDL framework is designed to facilitate gas supply to energy-intensive industries, industrial parks, special economic zones, embedded and captive power generation projects, Compressed Natural Gas (CNG) mobility initiatives, and other downstream gas utilization programs.
Since 2017, gas consumption in Nigeria has grown at an annual rate of 3%, reaching 21 billion cubic meters in 2023. The industrial sector has significantly increased its share of gas consumption, rising from 14% in 2010 to 37% in 2023. Meanwhile, the share of gas used for power generation has declined from 48% in 2010 to 34% in 2023, while consumption by the oil and gas sector has dropped from 38% to 29% over the same period.
