Axxela Limited, a major energy company in sub-Saharan Africa, has received new gas distribution licences for its subsidiaries Gaslink Nigeria Limited and Central Horizon Gas Company Limited. The licences, granted by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), will help expand gas distribution and increase the use of natural gas across the country.
These licences allow Gaslink Nigeria Limited and NNPC Gas Marketing Limited to operate in the Greater Lagos Industrial Area with a capacity of 130 million standard cubic feet per day (MMSCF/D). Similarly, Central Horizon Gas Company Limited (CHGC) will distribute gas in Port Harcourt’s Cluster 2 zone, with a capacity of 50 MMSCF/D. This marks the first phase of NMDPRA’s gas distribution licensing, focusing on companies that have heavily invested in gas infrastructure and met all legal requirements.
A Step Towards a Gas-Powered Economy
At the licensing event, Axxela Gas Distribution Managing Director, Kehinde Alabi, reaffirmed the company’s dedication to promoting natural gas as a key energy source.
“At Axxela, we strongly believe in the potential of natural gas to support businesses, industries, and Nigeria’s economic growth,” Alabi stated. “This milestone strengthens our commitment to transitioning Nigeria into a gas-powered economy through collaboration with the government, regulators, and industry players.”
Enhancing Nigeria’s Energy Sector
NMDPRA’s Chief Executive, Engr Farouk Ahmed, explained that the licences would help serve over 500 customers, with a total gas distribution capacity of 1.5 billion standard cubic feet per day. More than 1,200 kilometres of gas pipelines are in place to support this expansion. He praised the licensed companies for setting the pace in Nigeria’s energy industry.
The Federal Government views these licences as an essential step in transforming Nigeria into a gas-driven economy. This initiative will improve access to cleaner and more affordable energy, encourage investments, and support the development of gas infrastructure for national economic growth.
About Axxela
Axxela Limited is a pioneer in Nigeria’s private-sector natural gas industry, jointly owned by Helios Investment Partners LLP and Sojitz Corporation. The company is also a registered natural gas shipper on the West African Gas Pipeline (WAGP) and a member of the West African Power Pool (WAPP).
With over 360 kilometres of natural gas pipelines, Axxela provides energy solutions through its subsidiaries, including Gaslink Nigeria Limited, Gas Network Services Limited, Central Horizon Gas Company Limited, and Transit Gas Nigeria Limited.
This development signals a significant step in Nigeria’s journey towards energy sustainability, ensuring more businesses and households benefit from natural gas.