NIPCO secures 25-year gas distribution licence, converts 15,000 vehicles

NIPCO Gas Ltd at the weekend disclosed that it has converted 15,000 vehicles to Compressed Natural Gas (CNG).

The company further announced that it has been awarded Gas Distribution Licences (GDL) by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Federal Government.

MD/CEO, NIPCO Gas Ltd, Nagendra Verma, while briefing newsmen in Lagos, explained that the milestone highlights its pioneering role in the sub-sector and strengthens investor confidence in Nigeria’s gas industry.

SPONSOR AD

“The exclusivity period of 25 years granted under these licenses prevents infrastructure duplication, ensuring efficiency and national resource optimization,” Verma said.

He listed the Gas Distribution Licences Awarded to NIPCO Gas Ltd to include Ibadan Axis (Ogere-Ibadan-Oluyole-Olorisaoko-Asejire-Ajoda) – NIPCO Gas/NGML; Benin City – NIPCO Gas; Lekki Free Trade Zone – NIPCO Gas/NGML and Kara-Sagamu-Abeokuta-Ibadan Axis (Sagamu Interchange-Ibafo-Isheri-Otedola Bridge) – NIPCO Gas/NGML”

He said, “With these awards, NIPCO Gas Ltd now stands as Nigeria’s largest indigenous licensed gas distribution company.

“This achievement is a testament to our unwavering commitment and the continuous support of stakeholders like you.

“Our operational performance has been exceptional, with significant strides in supply chain efficiency, expansion of CNG infrastructure, customer satisfaction, and an increased market share.

“We have successfully commissioned several CNG stations across Abuja, Lagos, Edo, Delta, Ogun, Oyo, Kogi, and Akwa Ibom states. Our joint venture with NNPC Gas Marketing Limited (NGML) has strengthened industrial gas supply, particularly in the Lekki and Lagos-Ibadan corridors.”

Verma added that NIPCO Gas recently entered into an agreement with Delta State to construct a CNG station and CNG conversion workshop initially in Asaba.

“We are hoping to increase the number of CNG stations and conversion workshops in Delta State with the support of the government.

“Delta State has provided the land for this facility, which is a very proactive and welcoming step taken by them.

“We are sure, with such a type of public private partnership, it will provide speed to the Presidential CNG initiative.”

He pledged continued collaboration with local and international suppliers to increase the availability of CNG conversion kits and workshops to deepen the work of the Presidential Compressed Natural Gas Initiative (PCNGi).

“Looking ahead, we plan to expand operations further to meet the growing demand for CNG.

“Our strategic vision includes launching additional CNG stations nationwide and enhancing infrastructure such as pipelines and storage facilities. However, challenges persist, including the need for a more streamlined, time-bound regulatory approval system to fast-track the expansion of CNG infrastructure.”