FG Approves 25-Year Licenses for 10 Gas Distribution Companies to Expand Domestic Gas Utilization

The Federal Government has granted 25-year gas distribution licenses to 10 companies for the establishment and operation of gas networks in Lagos, Ibadan, Port Harcourt, and Benin City. The licenses, aimed at promoting domestic gas utilization, will cover franchise areas connected to the Escravos-Lagos Pipeline System.

At a ceremony in Abuja, NNPC, Shell, Nipco, and others were awarded licenses, with the project expected to distribute over 1.5 billion cubic feet of gas per day through 1,200 km of pipelines. The initiative, which is part of Nigeria’s gas expansion plan, aims to support energy industries, industrial parks, and power generation.

The initiative will bring affordable and reliable energy to energy-intensive industries, improve power availability, and facilitate cleaner energy generation. The government is also working to ensure adequate gas supply and infrastructure, with NNPC investing $500 million in liquefied natural gas plants in Kogi State.

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