By Moses Patience Chat
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has promised to create an environment that will enhance the growth of the nation’s gas sector.
The Authority Chief Executive (ACE), NMDPRA, Engr Farouk Ahmed, disclosed this at a recent stakeholder meeting on gas utilisation in Nigeria. At the meeting, he also said that the 12 regulations recently gazetted will unlock golden opportunities and signpost the pathway to energy security.
According to him, “policy frameworks such as the National Gas Expansion Programme (NGEP), the Decade of Gas Programme (DOGP) and the establishment of the Midstream and Downstream Gas Infrastructure Fund by the Authority to catalyse gas investments are yielding significant results.”
Ahmed called for collaborations and interventions of stakeholders that are needed to improve domestic gas utilisation in the country.
He explained that the engagement seeks to encourage large consumers of petroleum products to not only operate within the regulatory space, but also to become aware of the comparative advantages between the different fuels particularly gas which has been designated as Nigeria’s transition fuel.
The Executive Director, Distribution System, Storage and Retailing Infrastructure (DSSRI), Kalu Ukoha, while speaking at the meeting, said that some of the invited institutions have been identified as operating outside the regulatory oversight which is not in consonant with the Petroleum Industry Act (2021).
“This engagement sets the objective to enlighten this end-user category on the need to urgently obtain the requisite petroleum storage license and to engender the transition from white products to gas at the last mile.
“The Authority’s twelve gazetted regulations define the licensing regimes, procedures and standards for handling petroleum products which when breached pose increased risks. In addition, gas as the transition fuel represents a cleaner and more cost-effective energy source,” he said.
He also advised operators and businesses in the industry to take advantage of the evolving opportunities in the gas value chain for sustainable business growth by positioning their energy needs to embrace gas derivatives such as Liquefied Natural Gas (LNG), Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), Autogas, propane and butane to hedge against future global uncertainties to diesel supply.