The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has unveiled a national gas distribution grid system aimed at enhancing the delivery of natural gas across the country. The initiative, designed to streamline operations and ensure efficient last-mile access for consumers, will reduce reliance on gas trucking by using pipelines to directly deliver gas to end users.
Mr. Ogbugo Ukoha, the Executive Director of Distribution, Storage Systems, and Retail Infrastructure at NMDPRA, revealed the details during Session VI of the summit on “New Energy Order: Updates on Gas, CNG, and LPG.” He emphasized that the grid system would assign operators to specific zones across Nigeria, facilitating the direct transportation of gas and cutting transportation costs. Ukoha noted, “This is going to ensure that every gas molecule within the country is piped throughout without trucking, which is far more cost-effective than trucking.”
The plan also includes integrating existing players within each gas network zone, standardizing their operations to align with new regulatory standards. Ukoha further explained that this would create a structured, regulated gas network across Nigeria, ensuring all legacy operators contribute effectively to the new system.
A key feature of the grid is the Ajaokuta-Kaduna-Kano (AKK) pipeline, a 614-kilometer, 40-inch pipeline central to the nation’s gas vision. Expected to deliver two million standard cubic feet of gas daily, the AKK pipeline will be complemented by spur lines to connect Ajaokuta, Abuja, Kaduna, and Kano. Ukoha described the project as “a major enabler for gas growth in Nigeria.”
In addition, Ukoha highlighted the importance of the Nigeria LNG Train 7 project, which is expected to add seven million tonnes per day of liquefied natural gas (LNG) capacity by 2025. This expansion is seen as crucial for Nigeria’s gas sector growth and for meeting its delivery targets.
The NMDPRA has also implemented a mandate, effective from November 1, 2024, requiring both local and international LPG producers to prioritize domestic supply. This decision aims to ensure Nigeria meets its local demand before allowing LPG exports. Additionally, the Nigerian National Petroleum Corporation (NNPC) is now required to reinject the equivalent volume of gas exports back into the domestic market to support local supply.
These initiatives signal a significant step towards transforming Nigeria’s gas sector, ensuring greater accessibility, cost efficiency, and self-sufficiency in meeting local energy needs.
