The Federal Government has announced that it will no longer issue licenses to gas companies unless they have the capacity to construct pipelines for gas distribution.
This decision is aimed at discouraging the use of roads for transporting compressed natural gas.
During a visit to Abeokuta, the Ogun State capital, the Minister of State for Petroleum (Gas), Ekperikpe Ekpo, revealed this new condition.
Ekpo’s visit was prompted by the CNG explosion that occurred at Ita Oshin last Saturday, involving a Gasco Marine truck that crashed due to brake failure, resulting in casualties and vehicle damage.
Sent by President Bola Tinubu, Ekpo expressed the government’s commitment to investigating the incident and offering condolences to the people of Ogun State.
Transitioning from fossil fuels to CNG is a priority for the country, and Ekpo instructed the CEO of the Nigerian Midstream and Downstream Regulatory Authority, Farouk Ahmed, not to grant licenses to companies unable to deliver CNG through pipelines to consumers.
Ekpo stressed the need to eliminate virtual gas transport, citing ongoing efforts by the Federal Government to establish pipelines for safe CNG transportation, preventing accidents and ensuring public safety.
The minister emphasized the importance of reducing the risks associated with gas transportation, especially in light of the recent incident in Ogun State.
He reassured the public that CNG remains a preferable option to petrol, urging citizens to embrace this alternative despite challenges.
Ekpo also underscored the necessity for companies to use high-quality cylinders when distributing gas to avoid accidents.
In his remarks, Ahmed, the head of NMDPRA, highlighted collaborative efforts with relevant agencies to prevent similar incidents, emphasizing the importance of vehicle maintenance and driver training for road safety.
Governor Dapo Abiodun acknowledged the support from the visiting team and President Tinubu, pledging to support and promote the Federal Government’s CNG initiative.