Ekperikpe Ekpo
FG stops issuance of licences to gas firms with no distribution pipelines
The Minister of Resources (Gas), Ekperikpe Ekpo, has said that the Federal Government will cease to issue licenses to gas companies that lack the capability to construct pipelines for distribution.
Ekpo made this statement on Thursday following the aftermath of the gas explosion which claimed a life in Abeokuta, the Ogun State capital, last Saturday.
A compressed natural gas (CNG) truck owned by Gasco Marine, which had suffered a brake failure, rammed into the road barricade and went up in flames, killing one person and razing some vehicles.
Upon his arrival in the state, where he was welcomed by Governor Dapo Abiodun and his deputy, Noimot Salako-Oyedele, Ekpo mentioned that President Bola Tinubu had sent him to investigate the primary cause of the incident and express condolences to the people of Ogun State.
He stated that while the country needs to transition from fossil fuel to CNG, he had instructed Farouk Ahmed, Chief Executive of the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA), to refrain from issuing licenses to entities unable to pipe CNG to end users.
- “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.
- “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 said.
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.
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- On his part, Ahmed, the head of NMDPRA, confirmed that the agency is collaborating with the Standards Organisation of Nigeria (SON) and the Federal Road Safety Corps (FRSC) to prevent similar road explosions.
- He emphasized that some of the accidents are linked to the roadworthiness of vehicles.
- In addition, he noted that training programs are being implemented for truck drivers to enhance road safety.
