In a significant move aimed at enhancing safety and efficiency in the gas sector, the Federal Government has announced its decision to cease granting licenses to gas companies lacking the capability to construct pipelines for gas distribution. The rationale behind this decision is to discourage the transportation of compressed natural gas (CNG) via roads, following recent safety concerns.
The revelation was made by the Minister of State for Petroleum (Gas), Ekperikpe Ekpo, during his visit to Abeokuta, the capital of Ogun State, on Wednesday. Ekpo’s visit was prompted by an on-the-spot assessment of a tragic incident that occurred on Saturday, where a CNG gas truck owned by Gasco Marine experienced a brake failure, resulting in a fiery explosion at Ita Oshin. The accident claimed one life and caused significant damage to surrounding vehicles.
Accompanied by Governor Dapo Abiodun and Deputy Governor Noimot Salako-Oyedele, Ekpo expressed condolences to the people of Ogun State on behalf of President Bola Tinubu. He emphasized the necessity of transitioning from fossil fuel to CNG while addressing safety concerns associated with gas transportation.
In a directive aimed at bolstering safety measures, Ekpo revealed that he instructed the Chief Executive of the Nigerian Midstream and Downstream Regulatory Authority, Farouk Ahmed, to withhold licenses from companies unable to establish gas pipelines to end users. This initiative aims to curb “virtual gas transportation” and promote safer distribution methods. The decision underscores the government’s commitment to prioritizing safety and efficiency in the gas sector, as it seeks to modernize infrastructure and transition towards cleaner energy sources. As stakeholders navigate this transition, the government’s proactive measures are expected to facilitate sustainable growth while minimizing risks associated with gas transportation.
