The Federal Government has issued its first Wholesale Gas Supply Licence for 500 million standard cubic feet of gas per day to an indigenous firm to deepen gas utilisation across the country.
It issued the licence to Ohuru Trading Limited, stating that Section 142 of the Petroleum Industry Act provided for the issuance of the licence, which was required to guide commercial activities along the gas value chain.
The Chief Executive OF Nigerian Midstream and Downstream Petroleum Regulatory Authority, Farouk Ahmed, presented the licence to Ohuru Trading Limited on behalf of the government in Abuja on Saturday.
“Pursuant to the above (PIA), we are pleased to inform you today that the authority is undertaking a significant milestone as stipulated in section 142, which states that the authority may upon approval of an application and payment of prescribed fees, grant and issue a Wholesale Gas Supply Licence to a qualified applicant.
“In line with the above, Ohuru Trading Limited’s application for the Wholesale Gas Supply Licence was approved after due consideration and upon fulfillment of the stipulated requirements.
“The commercial licenses as provided for in the PIA in general and the Wholesale Gas Supply Licence in particular are significant in many respects as they underscore the focus and priority attention placed on commercial activities in the oil and gas space,” Ahmed stated.
He said the company was being presented with a third-party gas supply licence to purchase natural gas directly from any lease or third party.
“This will enable them to sell and deliver wholesale gas to wholesale customers and natural gas distributors at any location in Nigeria.
“We believe that this will encourage prospective applicants to turn in their requests for other commercial licences introduced by the Act and domiciled with the authority,” the NMDPRA boss stated.
Ahmed said the milestone would reinforce the government’s commitment towards attracting Foreign Direct Investments and other forms of capital inflow into the domestic economy, as well as improve the living conditions of Nigerians.
The Chief Commercial Officer of Ohuru Trading Limited, Mariah Lucciano-Gabriel, said the licence would enable the firm to sell gas on a wholesale basis.