HomeBUSINESSFG Issues First Wholesale Gas Delivery License Under PIA

FG Issues First Wholesale Gas Delivery License Under PIA

The Federal Government has issued the first wholesale gas delivery license for 500 million standard cubic feet of gas daily to the indigenous firm to deepen gas utilization in the country. 

The license was issued to Ohuru Trading Limited, stating that section 142 of the Petroleum Industry Act provided for the issuance of the license, this requires the guidance of commercial activities along the value chain. 

Farouk Ahmed, the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority presented the license to Ohuru Trading Limited representing the government in Abuja on Saturday 30th 2023. 

Under the above (PIA), “I inform you today that the authority is undertaking a significant milestone as stipulated in section 142, as it states the authority approval of an application and payment of prescribed fees, grant and issue a Wholesale Gas Supply License to eligible applicants.”

In the previous statement, Ohuru Trading Limited’s application for the Wholesale Gas supply license was approved after consideration and on the fulfillment of the requirement stipulated.  

Ahmed said the licenses given for the PIA in general and the Wholesale Gas Supply License are important as they underscore the focus and priorities of attention in the oil and gas space. 

He said the company was being given a third-party delivery license to buy natural gas directly from any lease. 

This will help them sell and deliver wholesale gas to their customers and Natural gas distributors in Nigeria. 

Furthermore, this will reinforce the government’s commitment to attracting Foreign Direct Investments and other forms of capital inflow into the economy, as it will improve the living conditions of the citizens. 

Mariah Lucciano-Gabriel, the Chief Commercial Officer of Ohuru Trading Limited said the license will enhance the firm to sell gas on wholesales. 

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