The Nigerian government has announced its decision to cease granting licences to gas companies lacking the capacity to construct pipelines for gas distribution. This measure aims to discourage the transportation of compressed natural gas (CNG) via roads.
The Minister of State for Petroleum (Gas), Ekperikpe Ekpo, disclosed this during a visit to Abeokuta, the capital of Ogun State, on Wednesday. Ekpo’s visit followed an explosion involving a CNG gas truck at Ita Oshin, resulting from brake failure, which claimed one life and destroyed several vehicles.
Sent by President Bola Tinubu to investigate the incident and extend sympathies to the people of Ogun State, Ekpo stated the necessity for Nigeria to transition from fossil fuels to CNG. He directed the Chief Executive of the Nigerian Midstream and Downstream Regulatory Authority, Farouk Ahmed, to refrain from issuing licences to entities incapable of piping CNG to end-users.
The Minister stressed the imperative of halting virtual gas transportation, highlighting the Federal Government’s efforts to construct pipelines for seamless CNG transportation. This initiative aims to prevent road explosions, thereby safeguarding lives and property, he noted.
Ekpo emphasised the urgency of reducing reliance on virtual gas transportation, particularly given the volatility associated with it, especially in light of the Ajaokuta–Kaduna–Kano pipeline. He reiterated the government’s commitment to developing gas pipeline infrastructure to minimise incidents and alleviate pressure on roads.
Despite the recent incident, Ekpo reaffirmed CNG’s viability as a superior alternative to petrol, urging Nigerians not to lose faith in its potential.