The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has reaffirmed its commitment in ensuring a safe and compliant Compressed Natural Gas (CNG) sector.
Mr. Ahmed Farouk, the Authority Chief Executive of NMDPRA disclosed this on Monday, October 28, 2024, during his keynote address at the ongoing Oil Trading & Logistics (OTL) 18th Africa Downstream Energy Week in Lagos.
The theme of the 2024 conference is “Alliances for Growth”.
Farouk said that the NMDPRA’s collaboration with industry stakeholders was to establish a robust regulatory framework for CNG.
“The CNG is still in its infancy in Nigeria. NMDPRA aims to streamline regulations and improve safety measures to promote market maturity and industrial growth.
“Our commitment to supporting the government’s objectives under the Petroleum Industry Act (PIA) remains unwavering.
“We are focused on delivering on our mandates while fostering collaborations to achieve shared aspirations within the industry,” he said.
Farouk said that the authority plans to revise and consolidate existing regulations through strategic engagements with stakeholders.
According to him, the initiative seeks to simplify compliance processes and ensure that safety standards are upheld throughout the CNG sector.
“In line with its efforts, the NMDPRA aims to promote CNG as a viable alternative fuel for vehicles, aligning with ongoing initiatives such as the Decade of Gas Program and the Pi-CNG programme,” Farouk added.
The NMDPRA boss noted that expanding CNG infrastructure remained crucial for enhancing energy security and supporting Nigeria’s transition to cleaner energy solutions.
He reaffirmed NMDPRA’s dedication to establishing strong partnerships within the industry and with regulatory bodies across West Africa.
Farouk highlighted the agency’s goal of creating a uniform gas transportation code to facilitate the movement of natural gas and enhance regional collaboration.
“The OTL conference serves as a vital platform for discussing strategies that lead to sustainable energy practices.
“The insights and outcomes from this summit will contribute significantly to the overall development of the industry,” he noted.
Also addressing the conference, Mr. Huub Stokman, Chairman of the Major Energy Markets Association of Nigeria (MEMAN), underscored the importance of cost efficiency in a fully deregulated downstream oil market.
He stressed the need for partnerships with organisations like the Nigerian Association of Road Transport Owners (NARTO) to address logistical challenges, such as road accidents involving tankers.
Stokman emphasised that alliances within the industry should focus on economic strategies for investment, knowledge development for human capital, and strategic partnerships.
“As Nigeria continues to prioritise energy security and sustainability, the NMDPRA’s initiatives signify a substantial step toward achieving a mature and compliant CNG market, positioning the country to meet both national and global energy goals.
By Yunus Yusuf
