FG: Gas distribution licence will only be granted to firms with pipeline capacity

The federal government says it will begin scrutinising the capacity of gas companies to build pipelines for gas distribution as a requirement for the issuance of licences.

Ekperikpe Ekpo, minister of state for petroleum resources (gas), spoke when he visited the gas explosion site at Ita Oshin in Abeokuta, Ogun state, on May 1.

According to the Federal Road Safety Corps (FRSC), on April 27, a gas tanker suffered brake failure, as a result, the driver lost control and crashed the vehicle into the road barricade.

The tanker burst into flames, killing one person, while two others sustained injuries.

Ekpo said going forward, regulators will emphasise the issuance of distribution licences that will ensure licenced distributors invest in the installation of pipelines to deliver gas directly to end users — rather than trucking to consumers.

The minister said switching from trucking to pipeline transportation would enhance safety, as well as improve efficiency and reliability in delivering gas to customers.

“I have directed the authority chief executive that for any further issuance of licence, the company should be competent enough to pipe it to their end users so that we are not exposed to this kind of danger any longer,” Ekpo said.

“As a ministry, we are looking at how we can reduce a lot of virtual conveyance of gas. 

“That is why we are putting much in developing the gas pipeline infrastructure so that the transportation would not be virtual, but rather through the pipelines. This will reduce this kind of incident and take off the pressure on our roads.”

Ekpo expressed commitment to growing the gas space, adding that efforts are being made to prevent such accidents from occurring in the future.