NMDPRA to ensure wholesale gas supply demands are met — CEO

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says it will ensure that current and future wholesale gas and petroleum liquids supply demands are met.

The NMDPRA Chief Executive, Mr Farouk Ahmed, said this on Wednesday in Abuja at a stakeholder sensitisation programme on the “Requirements, Opportunities, Benefits and Value of Wholesale Gas and Petroleum Liquids Supply Operations in Nigeria”.

Ahmed, represented by Mr Francis Ogare, Executive Director Hydrocarbon Processing Plant, Installation and Transportation Infrastructure, NMDPRA, said meeting gas demand was not only pivotal to the national economy but integral to the global energy market.

According to him, the benefits of wholesale supply operations cannot be overemphasised.

He listed the benefits to include fostering investments across the petroleum value chain, enhancing transparency in hydrocarbon measurement and providing tools for enforcing domestic obligations.

Other benefits according to him include ensuring arm’s length dealings for a level playing field and acting as a pathway for willing buyer, willing seller transactions of Nigeria’s hydrocarbon resources, amongst many other significant advantages.

However, he said that due to lingering issues, NMDPRA had been inundated with contentions issues regarding the implementation of wholesale supply operations.

He recalled that the Petroleum Industry Act (PIA) came into existence in Aug. 2021 and introduced licences for wholesale supply operations as prescribed in sections 142 and 197 of the Act.

“These licences are the appropriate licences for entities engaged in, or wishing to engage in the sale and delivery of natural gas and petroleum liquids, for domestic use or exports.

“Wholesale gas and petroleum liquids supply operations marks a significant evolution from the Petroleum Act of 1969 (PA) that was focused on production and exports only, to the PIA 2021.

“This ensures domestic energy security in addition to exports,” he said.

He, therefore appealed to stakeholders to explore opportunities through the operationalisation of its guidelines to pave way for optimised midstream and downstream oil and gas operations in the country.

The NMDPRA in its document titled: “Regulatory Regime for Wholesale Supply Operations,” defined Wholesale Customer of Petroleum Liquids as the one that supplies 10 million litres per annum.

According to the document, the PIA ensures appropriate licence for any person engaged in the sale and delivery of petroleum liquids to wholesale customers either for domestic use or export.

The gas stakeholders, however endorsed wholesale supply licensing framework and opportunities for collaborations to ensure maximum benefits are derived from wholesale supply operations.