Federal Government Sets New Conditions for Gas License Approval
The Federal Government has announced that it will cease granting licenses to gas companies that lack the capacity to construct pipelines for gas distribution.
The government indicated that this measure is intended to reduce the transportation of compressed natural gas (CNG) by road.
The Minister of State for Petroleum (Gas), Ekperikpe Ekpo, revealed this during a visit to Abeokuta, the capital of Ogun State, on Wednesday.
Ekpo visited Abeokuta to conduct an on-the-spot assessment following a CNG explosion at Ita Oshin that occurred on Saturday.
A CNG truck owned by Gasco Marine experienced a brake failure, crashed into a road barricade, and burst into flames, resulting in one death and the destruction of several vehicles.
Ekperikpe Ekpo, who was welcomed to Ogun State by Governor Dapo Abiodun and his deputy, Noimot Salako-Oyedele, stated that President Bola Tinubu had sent him to investigate the cause of the accident and to express condolences to the people of Ogun State.
Ekpo emphasized the need for Nigeria to transition from fossil fuels to compressed natural gas (CNG) and revealed that he had instructed Farouk Ahmed, Chief Executive of the Nigerian Midstream and Downstream Regulatory Authority, not to issue licenses to those who cannot deliver CNG to end-users via pipelines.
The Minister of State for Petroleum (Gas) stressed the importance of ending virtual gas transportation, noting that the Federal Government is working intensively to build pipelines for the smooth transportation of compressed natural gas (CNG).
He explained that this would help prevent road explosions, ultimately protecting lives and property.
"As the Federal Government, we're doing everything we can to minimize virtual transportation of gas due to its volatility, especially with the Ajaokuta–Kaduna–Kano pipeline," he stated.
“I have instructed the Chief Executive of the authority that any company applying for a gas license must be capable of piping the gas to their end-users, to prevent further exposure to such dangers.
"As a ministry, we are exploring ways to reduce the high reliance on virtual gas conveyance. This is why we're investing heavily in developing gas pipeline infrastructure to transition from virtual transportation to pipeline-based distribution. This shift will minimize incidents like this and reduce the burden on our roads," he stated.
Ekperikpe Ekpo noted that despite this incident, compressed natural gas (CNG) remains a better alternative to petrol, encouraging Nigerians not to lose confidence.
"This is a safer option compared to petrol, especially considering what happened in Port Harcourt, where many lives were lost and numerous vehicles burned. We should continue in this direction," he added.
Ekpo emphasized the importance of companies using only high-quality cylinders for gas distribution to prevent accidents.
During his remarks, the NMDPRA head, Ahmed, reassured Nigerians that the agency is collaborating with the Standards Organisation of Nigeria and the Federal Road Safety Corps to prevent similar road accidents.
Ahmed pointed out that some of these accidents happen due to issues with the roadworthiness of the vehicles involved.
He also mentioned that training programs are being organized for truck drivers to ensure road safety.
In response, Governor Abiodun thanked the team and President Tinubu for their support and pledged to further embrace and promote the Federal Government's CNG initiative.
Leave A Comment