Federal Government is set to generate about N1.8 billion from Gas Distribution Licence (GDL) issued by Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

According to NMDPRA, apart from revenue generation, the licence is aimed at opening up the country to gas penetration for business purposes.

Director, Public Affairs Department of the Authority, George Ene-Ita, explained that the licence would boost socio-economic activities, generate employment opportunities and expand opportunities at the retail end of the gas value chain.

He added: “This will enhance mobility Compressed Natural Gas (CNG) scheme by expanding access and distribution across the country. While this engenders economic development, the government will also generate income from the exercise. In the medium to long term, the award would generate revenue upwards of N1.8 billion into government coffers.”

Operating gas distribution systems have an installed natural gas distribution capacity of approximately 1.5 billion Standard Cubic Feet per day (SCF/d), 1281.978 kilometres of the installed pipeline system, and currently supply over 600 customers across the country.

GDL has an exclusivity right of 25 years.

Key requirements of GDL include connectivity with an existing or proposed natural gas transmission pipeline system for the supply of wholesale gas.

Nigeria’s gas distribution zones cover 11 states and four geopolitical zones, including Sokoto, Kano, Kaduna, Abuja, Osun, Enugu, and Bayelsa states that are classified as underdeveloped. While Anambra is at the proposed stage, the states that have gas fully operational include Oyo, Kogi, Ogun, Edo, Ondo, Rivers, Abia and Lagos.