The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has warned oil and gas businesses operating without its licences to desist from the act or face the wrath of the law.
According to the Authority, operating without its authorisation is illegal. It added that it is punishable to store and use diesel, petrol, gas products without getting approval, noting that storage facilities above 500 litres must be appraised, regularised and licensed before being deployed into operation.
This is as the NMDPRA says plans are ongoing to introduce new guidelines to ensure industry operators conform to standards, pointing out that the Authority has been empowered by the Petroleum Industry Act (PIA) to support the growth of the industry.
At a stakeholders’ engagement on gas utilisation in Nigeria in Lagos, the Chief Executive Officer, NMDPRA, Farouk Ahmed, said the 12 regulations recently gazetted would unlock the golden opportunities and signpost the pathway to energy security.
Ahmed, who was represented by the Executive Director, Distribution Systems, Storage and Retailing Infrastructure, (DSSRI), Ogbugo Ukoha, said the engagement would create the necessary awareness and make compelling case for the industry operators to foster a compliance culture, which guarantees safer and sustainable facilities.
He noted that the forum sought 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.
“It is in this regard that the Federal Government has put in place various initiatives and policy frameworks including the National Gas Expansion Programme (NGEP) and the Decade of Gas Programme (DOGP). The Petroleum Industry Act (2021) has also established within the Authority the midstream and downstream gas infrastructure fund to catalyse gas investments. These efforts are yielding significant results, yet more collaborations and interventions are needed to improve domestic gas utilisation,” he stated.
Delivering his keynote address, Executive Director of Distribution Systems, Storage and Retailing Infrastructure (DSSRI), Ogbugo Ukoha, represented by the Regional Coordinator Southwest, Lagos Regional Office, Ayorinde Cardoso, said factories, hotels, estates and schools who are not only the heaviest consumers of diesel but have also been identified as operating outside the regulatory oversight.
