NMDPRA Reiterates Commitment To Facilitate Business Growth in the Oil and Gas Industry

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The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NDMPRA) has again reiterated its commitment to facilitating business growth in the oil and gas industry, ensuring consumer protection, promoting gas development, and evolving a competitive market environment.

 In addition to the above, it also stated that it would continue to engage in constructive stakeholder engagements and support the initiatives of the Ministry of Petroleum Resources to realize Mr. President the Industry’s aspirations.

Farouk A. Ahmed, the Authority Chief Executive, made this declaration on Thursday at the Authority’s “Strategic Consultation For Effective Regulation of the Industry ” in Abuja.

He stated that as the year progresses in 2025, the NMDPRA will continue consolidating its successes for enhanced regulatory oversight. This would include upgrading our laboratories for enhanced product quality analysis and referencing, inter-agency collaborations, automation, and promoting sustainability in the industry.

 In addition, we will continue to collaborate with PCNGI to ensure deployment of CNG infrastructure in major cities of Lagos and Abuja, up to 100,000 conversions while collaborating with states to develop NGVs in other areas

He however identified some challenges some challenges still exist that we need to address.

These include:

• Establishment and operation of petroleum handling facilities without proper licences, permits, and authorizations

• Poor collaborations for Open / third-party Access to facilities

  • Lack of cooperation of some operators for effective regulatory oversight in line with PIA provisions.

 The Authority boss implores the industry to adhere to all regulatory requirements, especially as they relate to safety, efficiency, best practices, sustainability, consumer protection, and community participation.

He stated that over the years, the Authority has taken deliberate and proactive actions to protect and grow the industry, in line with the aspirations and provisions of the PIA 2021.

 “We have taken necessary steps to ensure the evolution of an open, competitive and contestable market in the product supply chain. The full price deregulation of petroleum products market has enabled the creation of a level playing field which fosters healthy competition and enables investment opportunities.”

 In the same vein, the reform, according to him, has occasioned adequate supply and distribution of petroleum products in the country, with consumers enjoying competitive prices and value-added services.

Multiple sources of supply have further enhanced national energy security. For the first time in many years, the country witnessed the end-of-year festivities and the beginning of a new year without any supply disruption or product shortages that may have led to fuel queues.

He said the contribution of domestic refineries to national energy supply requirements and the participation of other Oil Marketing Companies (OMCs) in product supply has been enhanced. Equally, the emerging competitive market environment, the downswing in international market price, appreciation in Naira, and multiple sources of supply, continue to encourage steady stability in pump price of petroleum products nationwide.

 He explained that to further support the development of the West African refined fuel market, the NMDPRA is partnering with S&P Global Commodity Insights to organize a workshop targeted at creating a robust platform for regional collaborations among oil industry regulators, policy formulation, the creation of a trading hub in West Africa, and a more transparent West African pricing assessment and benchmarking.

 In the refining sector, he stated that Nigeria is steadily reemerging as a major supply hub. “The biggest single train refinery in the world, the Dangote Refinery, the four NNPCL refineries are gradually being restreamed to ramp up production, our modular refineries are upscaling both in capacities, utilization and in numbers. With these, Nigeria is already a net exporter of some petroleum products with the target of all petroleum commodities.”

“We have taken careful measures to ensure consumer protection in line with PIA requirements. This is to protect citizens from exploitative tendencies and unwholesome practices by the sector participants.

He states further that the development of CNG as a viable alternative to Petrol has been incentivized.

He stated that the NMDPRA has supported the PCNGI, which has, over the last year, helped stimulate 186 new conversion centers, increasing Nigeria’s conversion capacity by over 2500%. These conversions, alongside new buys, have raised Nigeria’s Nigerian Gas Vehicles (NGV) population to an estimated 30-50,000 vehicles and trucks, and it continues to grow daily.

 With over $400 million attracted for investment in 86 and 65 new daughters & mother stations under construction respectively, Nigeria refueling capacity has therefore risen from 20 to 56.

The collaborative efforts of PCNGI, NMDPRA and SON, he stated, led to the development of standards and the Nigeria Gas Vehicle Monitoring

System to ensure safety which is already in the pilot phase, is expected to be launched in 2025.

To address the observed deficit in critical energy projects financing, the NMDPRA, he stated, is supporting the establishment of Africa Energy Bank, which is expected to be a game changer in enabling investment in critical infrastructure across the continent. “Indeed, Nigeria is poised to be the energy center for Africa, with competitive financing and favourable regulatory environment.”

 He stated that the NMDPRA is also supporting the Decade of Gas Program, which is making significant progress in unlocking our natural gas resources for industrializing the country. The program supports gas supply and the development of infrastructure projects.

“In line with PIA provisions, the NMDPRA has emplaced a gas pricing regime that supports the growth of gas supply, infrastructure and utilization projects.”

“The NMDPRA has also enshrined transparency and accountability in its regulatory activities, we have progressively automated our processes to enhance efficiency.

 The Authority has enacted 20 regulations to give effect to PIA

provisions. We have reviewed the Gas Transportation Network Code for improved access to natural gas and operationalized the MDGIF as a catalyst for gas infrastructure development and investments.”

“We have also upscaled our processes for Issuance of Licences,

Permits and Authorizations for establishing and operating new refineries, gas plants, pipelines and other hydrocarbon handling facilities.

 In line with our strategic policies, we maintain a veritable Inter-agency collaboration with security agencies (NSA, DSS, Customs Service, Nigerian Navy, etc.) which has curbed sharp practices such as diversion/smuggling of petroleum products.

The NMDPRA also collaborates with the SON, the National Automotive Design and Development Council (NADDC), and the National Institute of Transportation Technology (NITT) to ensure that our mobility CNG growth is achieved safely and sustainably.”

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