NMDPRA Approves 25-Year Gas Distribution Licence to Oil Firm as NNPC Buys Stakes in Another Company
- The Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA) has granted a gas distribution licence to Falcon Corporation
- The 25-year gas distribution licence enables the firm to distribute gas to the Ikorodu Industrial Zone
- The development comes as NNPC agreed to a 15% equity in Starzs Gas Limited for CNG supply
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Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA) has given Falcon Corporation Limited a 25-year gas distribution licence.
The company disclosed in a statement signed by Joe Ezeigbo, its managing director, that the licence allows the corporation the exclusive right to gas distribution in Ikorodu Industrial Zone.
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The new licence to extend gas distribution
He disclosed that the licence is a significant step in boosting its role in the domestic gas market.
According to him, the new milestone allows the company to expand its gas distribution operations to ensure a more sustainable and efficient supply of LNG to industries, businesses and residential consumers.
The Punch reported that Ezeigbo said the new licence aligned with Section 148 of PIA, mandating the NMDPRA to issue licences to eligible individuals and organisations.
Impact of gas distribution licence
He said the move was part of the Nigerian government’s efforts to implement the PIA.
The Falcon boss said that natural gas is critical in fostering industrialisation, job creation, and revenue generation.
According to Ezeigbo, a virile domestic gas market is key to achieving the government’s ambitions under its Decade of Gas Initiative.
“Falcon Corporation Limited GDL is expected to promote accessibility and availability of gas, encourage infrastructure development, crash the cost of production, aid the influx of industries to Ikorodu industrial Zone,” Ezeigbo reveals.
The development follows a 15% equity investment by the Nigerian National Petroleum Company Limited (NNPC) in Starzs Gas Limited.
NNPC to partner with CNG marketing firm
The NNPC, via its subsidiary, NNPC Gas Marketing Limited has accepted a 15% stake in Starzs Gas’ two million standard cubic feet per compressed natural gas mother station in Ughelu, Delta State.
As part of the partnership, NNPC has agreed to guarantee gas supply to the facility on a competitive pricing model.
It will allow its logo to stand alongside Starzs Gas to show the partnership.
Starzs Gas is reportedly owned by Nigerian billionaire and investor, Greg Ogbeifun.
The deal was announced during the project’s groundbreaking ceremony by the managing director of NNPC Gas Marketing Limited, Justin Ezeala. He represented the minister of state for petroleum resources (gas), Ekperikpo Ekpo.
The facility will be inaugurated in the first quarter of next year and will be expanded after 18 months.
NMDPRA seals fuel stations and a gas plant in Ogun
Meanwhile, Legit.ng earlier reported that the NMDPRA shut down two filling stations and a gas plant in Sagamu on Wednesday, February 12, 2025.
The fuel stations were sealed for under-dispensing and shortchanging customers, while the gas plant was shut down over safety issues.
The Ogun state coordinator of NMDPRA, Akinyemi Atilola, stated that residents of the affected community alerted the agency to the risky siting of the gas plant in the area.
Proofreading by Nkem Ikeke, journalist and copy editor at Legit.ng.
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