This publication provides information on developments in the Nigerian Gas Sector during the fourth quarter ended December 2020 and January 2021. We hope you find the information and insights in the publication useful.
1. Federal Government of Nigeria {FGN} Releases Guideline for Operation of Downstream Gas Facilities
The Department of Petroleum Resources (DPR) released guidelines for the establishment and operation of downstream gas facilities across the country. The Guidelines were issued pursuant to the Petroleum Act 1969, Mineral Oils (Safety) Regulation, 1997 and the Petroleum Regulation, 1967. Going forward, companies seeking to establish gas-dispensing facilities are now required to obtain the relevant approvals and licenses, before commencing operation.
The Guidelines stipulate the minimum requirements, procedures and conditions which must be fulfilled before the grant of approvals or licences for the construction, installation, modification, takeover, relocation and operation of downstream gas facilities in Nigeria. It includes the following:
- Guidelines for the establishment and standard operation of Liquefied Petroleum Gas {LPG} refilling facilities and retail outlets;
- Guidelines for the establishment of auto gas refueling stations and add-on gas facility;
- Guidelines for the establishment of gas storage and utilisation facilities;
- Guidelines for the establishment and operation of Compressed Natural Gas (CNG) compression facilities; and
- Guidelines for the establishment and operation of Gas Reticulation facilities.
Companies intending to establish these facilities must comply with the minimum requirements stipulated for design, construction, installation, maintenance, standard operating procedures, documentation, storage and standards highlighted in the Guidelines. Investors are required to obtain the necessary approvals and the licence to operate (depending on the proposed gas facility). The Guidelines also provide the necessary procedures for pre-licence approvals, renewal of licences, decommissioning of facilities and the applicable sanctions for non-compliance with the requirements documented therein.
According to the Guidelines, interested applicants are to apply for licences through the Automated Gas System portal via: elps.dpr.gov.ng. Additional details on the specific guidelines/procedures for each gas facility highlighted above can be accessed on the DPR’s website1 by stakeholders and prospective investors.
Hopefully, the release of the Guidelines, together with other policies aimed at developing the Nigerian Gas sector will enhance gas penetration and utilization, and promote operational safety and the ease of doing business in the Nigerian oil and gas sector.
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