The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has launched a pioneer gas trading licence, clearing house, and settlement authorisation platform to enable transparent pricing.
The NMDPRA launched the platform in Abuja on Thursday, in
collaboration with the Securities and Exchange Commission (SEC).
In June, the authority, in partnership with the SEC, granted
licences to JEX Markets Limited to establish and operate an online platform for
gas trading and exchange.
The agency had said JEX Market was licensed to establish and operate a gas clearing house and settlement authorisation platform, “the first of its kind in Africa”.
Speaking during the launch, Farouk Ahmed, NMDPRA’s chief
executive officer (CEO), said the event signifies a major step towards building
a transparent, efficient, and inclusive gas marketplace that aligns with the
national ambition under the “decade of gas” initiative.
He said the new gas trading framework aims to correct
weaknesses by establishing a modern platform where wholesale gas transactions
are guided by transparent pricing, reliable clearing systems, and standardised
trading practices.
Ahmed emphasised that the authority’s responsibility does
not end with issuing licences.
Also speaking, Ekperikpe Ekpo, minister of state for
petroleum resources (gas), said the launch is consistent with the renewed hope
agenda of President Bola Tinubu, “who stated that natural gas will play the
central role in the energy security, industrialization, and economic
diversification”.
“The president’s vision requires a regulatory environment
that is predictable, trusted, and designed to unlock value. Today’s
inauguration is a demonstration of that commitment,” he said.
“Our country is richly endowed with natural gas reserves,
among the biggest in the world, but if the underlying market where the gas will
flow is not efficient, reliable, and well-regulated, it will not be possible
for us to realize the ultimate potential of the resource.
“The Gas Trading Licence introduced today is decisive on
this front, paving the way for a new, regulated market where reliable traders
will feel safe doing business, where businesses can plan, and where investors
can invest, knowing that it will safeguard both their capital and the public
interest.”
Ekpo said the NMDPRA is mandated to regulate and monitor
midstream and downstream operations, protect customers, set fair and
transparent cost benchmarks, and ensure adherence to licence conditions, in
line with the Petroleum Industry Act (PIA).
He said the trading licence offers the governance framework
essential for a modern gas industry, and also represents the implementation of
the provisions of the licensing requirement that make the investment possible.
Ekpo said the licence is based on sound regulations and
guidelines governing technical competence, commercial capability, financial
soundness, and ethical operations.
He stressed that the licence holders are responsible for
adherence to the various rules on gas measurement, tariffs, pricing, and
assignments.
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