NMDPRA gas expansion aims to accelerate industrialisation and lower production costs, with strict regulatory support and nationwide distribution plans

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has pledged to enforce strict compliance while accelerating gas distribution to drive industrialisation and reduce production costs across the country.

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Saidu Mohammed, Chief Executive of the NMDPRA, made the remarks on Friday in Port Harcourt, Rivers State, during an inspection of petroleum and gas facilities.

He stressed the authority’s commitment to supporting operators in the midstream and downstream sectors while ensuring regulatory frameworks are transparent and effective.

“The distribution networks are critical to industrialisation because industries thrive when gas is available. Gas provides a cleaner and more efficient energy source that lowers production costs and ultimately reduces consumer prices,” Mohammed said.

The inspection aligns with the Federal Government’s Decade of Gas initiative, which aims to maximise Nigeria’s abundant gas resources.

Mohammed highlighted that expanding domestic gas utilisation requires robust distribution networks capable of delivering energy efficiently to industries and consumers.

The NMDPRA chief disclosed that the authority is mapping the country to allocate Gas Distribution Licences, ensuring licensed operators work within defined franchise areas.

Where transmission pipelines are unavailable, virtual gas distribution via Compressed Natural Gas (CNG) will be deployed.

“These operators may appear small, but they are vital to government’s aspiration of delivering gas to every corner of the country, particularly industrial hubs,” he added.

Mohammed also stressed that industrialisation is central to national development and economic recovery. While the authority does not supply appliances such as gas cylinders, it ensures facilities meet required standards from production to consumption.

“Our goal is to deliver petroleum gas at the lowest possible cost, from production through transportation to distribution,” he said.

During the visit, the delegation inspected facilities operated by Stockgap Fuels Limited, Matrix Petrochemical Limited, and Central Horizon Gas Company Limited to assess operational standards.

Dr. Stanley Ohamarije, Chairman of Stockgap Limited, announced plans to inject 5 million gas cylinders into the market over the next five years to support the government’s 10-million-cylinder target and deepen gas penetration.

He highlighted that Stockgap’s plant has a production capacity of 2,500 cylinders per hour.

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

He emphasised that regulatory support, including timely licences and approvals, has facilitated the expansion.

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“Natural gas remains a major driver of industrial growth globally. CHGC is establishing facilities across Nigeria to support economic development,” Alabi stated, noting the NMDPRA visit will encourage further scaling of gas supply to industries.