FG gives fresh condition for issuance of gas licence

In response to the recent gas explosion in Abeokuta, Ogun State, which resulted in a fatality, the Federal Government has announced plans to cease issuing licenses to gas companies that lack the infrastructure to construct pipelines for gas distribution.

The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, made this announcement during his visit to Abeokuta for a firsthand evaluation of last Saturday’s CNG explosion at Ita Oshin. He stated that this decision is crucial to curtail the transportation of compressed natural gas via roadways.

The explosion involved a CNG gas truck owned by Gasco Marine, which, after experiencing a brake failure, collided with a road barricade and ignited, leading to the death of one person and the destruction of several vehicles.

Received by Governor Dapo Abiodun and Deputy Governor Noimot Salako-Oyedele, Minister Ekpo mentioned that President Bola Tinubu had directed him to investigate the root cause of the incident and extend condolences to the people of Ogun State.

Minister Ekpo highlighted the transition from fossil fuels to CNG and has instructed Farouk Ahmed, the Chief Executive of the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA), not to approve licenses for entities unable to install pipelines to directly supply CNG to consumers.

He stressed the importance of halting virtual gas transportation, noting that the Federal Government is actively working to develop pipelines that will ensure the safe and efficient delivery of CNG, thereby reducing the risk of road explosions and safeguarding lives and property.

“As the Federal Government, we are trying all that we can to ensure we reduce virtual transportation of gas because of the volatility of it, especially with the Ajaokuta–Kaduna–Kano pipeline,” he said

“I have directed the authority chief executive that for any further issuance of licence, the company should be competent enough to pipe it to their end users so that we are not exposed to this kind of danger any longer.

” as a ministry, we are looking at how we can reduce a lot of virtual conveyance of gas. That is why we are putting much in developing the gas pipeline infrastructure so that the transportation would not be virtual, but rather through the pipelines. This will reduce this kind of incident and take off the pressure on our roads,”

Ekpo stressed that despite the incident, CNG remains a better alternative to petrol, urging Nigerians not to be discouraged.

“This is better than even fuel if you look at what happened in Port Harcourt where lives were lost and so many vehicles burnt. It is better we go this route,” he added.

He emphasized the necessity for companies to utilize high-quality cylinders for gas distribution to prevent accidents.

The head of NMDPRA, Ahmed, assured the public that his agency is collaborating with the Standard Organisation of Nigeria and the Federal Road Safety Corps to prevent similar explosions on the roads.

Ahmed noted that some accidents are attributable to the roadworthiness of the vehicles involved.

He further mentioned that the agency is conducting training programs for truck drivers to enhance safety on the roads.