Axxela Limited, a gas and power portfolio company in sub-Saharan Africa, has received gas distribution licences for its subsidiary companies, Gaslink Nigeria Limited, and Central Horizon Gas Company Limited, from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to support expansion opportunities and deepen domestic gas utilisation in the country.
The licences, awarded to Gaslink Nigeria Limited & NNPC Gas Marketing Limited for the Greater Lagos Industrial Area Gas Distribution Zone with an installed capacity of 130 MMSCF/D and to Central Horizon Gas Company Limited (CHGC) for the Port Harcourt Cluster 2 Gas Distribution Zone covering the Greater Port Harcourt Area with an installed capacity of 50 MMSCF/D, represents part of NMDPRA’s first phase of award of gas distribution licences.
NMDPRA awarded licences in this first phase to operators who have invested significantly in developing gas distribution infrastructure in the designated gas distribution zones and have met the prescribed requirements as set out in the Petroleum Industry Act and relevant regulations.
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In his remarks at the event, Kehinde Alabi, the managing director of Axxela Gas Distribution said, “At Axxela, our belief in the transformative power of natural gas remains unwavering. We are committed to ensuring that natural gas continues to play a crucial role in supporting businesses, industries, and nations striving for economic resilience and environmental sustainability. This event is a significant milestone and further demonstrates our commitment to propelling Nigeria toward becoming a gas-powered economy. Through valuable and strategic collaboration with the government, regulators, and other key sector actors, Axxela will continue to champion and promote natural gas as a sustainable energy alternative for the future”.
Delivering his keynote address, the Authority Chief Executive of NMDPRA, Engr Farouk Ahmed announced that the licenses will meet the gas demand for over 500 customers with a cumulative gas distribution capacity of approximately 1.5 billion standard cubic feet (bscf) per day with over 1,200km of gas distribution pipeline networks. He commended the licensees for their role and commitment as pioneers in setting the pace for the industry.
The award of the gas distribution licences reflects a significant milestone in the Federal Government’s aspiration to transform Nigeria into a gas-based economy and mark a new growth phase in Nigeria’s domestic gas market segment. The award of the licences will improve access to cleaner and affordable energy while unlocking fresh investments in developing critical gas infrastructure for the country’s socio-economic benefit.
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