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Federal Government Gives Fresh Condition for Issuance Of Gas Licence

Following the aftermath of the gas explosion which claimed a life in Abeokuta, the Ogun State capital last Saturday,  the Federal Government has said it would stop granting licences to gas companies with no capacity to build pipelines for gas distribution.

The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, conveyed this decision during his visit to Abeokuta for an on-the-spot assessment of the recent CNG explosion at Ita Oshin.

The incident, which occurred last Saturday, involved a CNG gas truck owned by Gasco Marine. The vehicle, reportedly suffering from brake failure, collided with a road barricade and erupted into flames, resulting in the loss of one life and significant damage to surrounding vehicles.

During his visit, Minister Ekpo, representing President Bola Tinubu, expressed condolences to the people of Ogun State and emphasized the urgent need for action to prevent such tragedies. He underscored the government’s commitment to transitioning from fossil fuels to Compressed Natural Gas (CNG) but stressed the importance of ensuring safe transportation and distribution methods.

Ekpo revealed that the Federal Government would no longer grant licenses to gas companies lacking the capacity to build pipelines for gas distribution. This decisive measure aims to discourage the transportation of compressed natural gas through roads, thereby minimizing the risk of accidents and explosions.

In his directive to the Chief Executive of the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA), Farouk Ahmed, Minister Ekpo instructed against issuing licenses to entities unable to pipe CNG directly to end-users. He emphasized the imperative of halting virtual gas transportation and reiterated the government’s commitment to constructing pipelines for seamless transmission of CNG.

The minister emphasized that this proactive approach would not only prevent explosions on the roads but also safeguard lives and property. By prioritizing the establishment of a robust pipeline infrastructure, the Federal Government aims to enhance the safety and reliability of CNG distribution nationwide.

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