Farouk Ahmed, Authority Chief Executive
Nigeria has sustained investment growth in the Compressed Natural Gas (CNG) sector to boost domestic utilization of the product as a viable alternative to fossil fuel.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) said it has supported the Presidential CNG Initiative (PCNGI) which has over the last year, helped stimulate 186 new conversion centers increasing Nigeria’s conversion capacity by over 2500 per cent.
These conversions alongside new buys have raised Nigeria Nigerian Gas Vehicles NGV population to an estimated 30-50,000 vehicles and trucks and it continues to grow daily.
The Authority Chief Executive of the NMDPRA Farouk Ahmed, in his address during the Petroleum Industry Stakeholders Forum (PISF), revealed that with over $400 million attracted for investment in 86 and 65 new daughters & mother stations under construction respectively, Nigeria refueling capacity has therefore risen from 20 to 56.
Farouk notes that the collaborative efforts of PCNGI NMDPRA and the Standards Organization of Nigeria (SON) has led to the development of standards and the Nigeria Gas Vehicle Monitoring System to ensure safety which is already in pilot phase, expected to be launched in 2025.
To address the observed deficit in critical energy projects financing, he said the NMDPRA is supporting the establishment of Africa Energy Bank, which is expected to be a game changer in enabling investment in critical infrastructure across the continent.
“Indeed, Nigeria is poised to be the energy center for Africa, with competitive financing and favourable regulatory environment.” he added.
Farouk further noted that the NMDPRA is also supporting the Decade of gas Program which is making significant progress in unlocking Nigeria’s natural gas resources for industrializing the country.
The program supports gas supply and development of infrastructure projects, adding that in line with the Petroleum Industry Act (PIA) provisions, the NMDPRA has emplaced a gas pricing regime that supports the growth of gas supply, infrastructure and utilization projects.
The NMDPRA has also enshrined transparency and accountability in its regulatory activities; we have progressively automated our processes to enhance efficiency.
The Authority has enacted 20 regulations to give effect to PIA provisions, he said stating “We have reviewed the Gas Transportation Network Code for improved access to natural gas and operationalised the MDGIF as a catalyst for gas infrastructure development and investments.
“We have also upscale our processes for Issuance of Licences, Permits and Authorizations for the establishment and operations of new refineries, gas plants, pipelines and other hydrocarbon handling facilities.”
He went on to say that in line with its strategic policies, the Authority maintains a veritable Inter-agency collaboration with security agencies (NSA, DSS, Customs Service, Nigerian Navy, etc.) which has curbed sharp practices such as diversion/smuggling of petroleum products.
The NMDPRA also collaborates with the SON, the National Automotive Design and Development Council (NADDC), and National Institute of Transportation Technology (NITT) in ensuring that our mobility CNG growth is achieved in a safe and sustainable manner.
He however listed some challenges facing the industry to include, establishment and operation of petroleum handling facilities without proper licences, permits and authorizations, poor collaborations for Open / third party Access to facilities and lack of cooperation of some operators for an effective regulatory oversight in line with PIA provisions.
Farouk therefore implored industry operators to adhere to all regulatory requirements, especially as they relate to safety, efficiency, best practices, sustainability, consumer protection and community participation.
He said beginning from the year 2025, the NMDPRA would consolidate its successes for enhanced regulatory oversight.
This would include the upgrade of our laboratories for enhanced product quality analysis and referencing, inter-agency collaborations, automation, and promoting sustainability in the industry.
In addition, the Agency will continue to collaborate with PCNGI to ensure deployment of CNG infrastructure in major cities of Lagos and Abuja, up to 100,000 conversions while collaborating with states to develop NGVs in other areas.
“While we implement this initiative, we will be guided by the clear provisions of the PIA, related to the functions and responsibilities of the institutions governing the Sector and the need for efficiency and sustainable growth in the sector.” he assured while also reiterating the commitment of the NMDPRA to facilitate business growth in the industry, ensure consumer protection, promotion of gas development and evolution of a competitive market environment.
The NMDPRA boss was of the view that national energy security has been further enhanced with multiple sources of supply. For the first time in many years, the country witnessed the end-of-year festivities and the beginning of a new year without any supply disruption or product shortages that may have lead to fuel queues.
According to him, the contribution of domestic refineries to national energy supply requirements and participation of other Oil Marketing Companies (OMCs) in product supply has been enhanced.
Equally, the emerging competitive market environment, downswing in international market price, appreciation in Naira and multiple sources of supply, continue to encourage steady stability in pump price of petroleum products nationwide.
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