Library / B 107 Federal Republic of Nigeria Official Gazette No. 48
B 107 Federal Republic of Nigeria Official Gazette No. 48

Page 5 of 12
B 111
S. I. No. 9 of 2023
Commence-
ment
PETROLEUM INDUSTRY ACT, NO. 6, 2021
GAS DISTRIBUTION SYSTEMS REGULATIONS, 2023
[14th Day of March, 2023]
In exercise of the powers conferred on it by section 33 (a), 111(4)(a), 148, 149
and 151 of the Petroleum Industry Act, No. 6, 2021 (“Act”) and all other powers
enabling it in that behalf, the Nigerian Midstream and Downstream Petroleum
Regulatory Authority (“Authority”)  makes these Regulations—
1. The objectives of these Regulations are to —
(a) establish the procedure for the grant of a gas distribution licence for
a gas distribution system in a local distribution zone ; and
(b) provide sanctions, penalties and administrative fines for failure to
comply with the provisions of these Regulations.
2.  TheseRegulations shall apply to activities connected with the grant of
gas distribution licence for a gas distribution system within a local distribution
zone, including gas distribution systems in existence prior to the commencement
of these Regulations.
3.—(1)  A person shall not undertake gas distribution in Nigeria without
a gas distribution licence granted by the Authority.
(2)  A gas distribution licence shall be granted in respect of a geographical
limit within a local distribution zone determined by the Authority and shall
confer on the holder, the exclusive right to distribute and sell its natural gas
without discrimination to consumers in that local distribution zone.
(3)  A gas distribution licence shall, subject to the provisions of the Act
and these Regulations, be valid for a term of 25 years from the date of grant
of the licence and may be renewed for further terms of 25 years each subject
to terms and conditions as may be prescribed by the Authority.
4.—(1)  The Authority shall, by notice published in the Federal
Government Gazette, designate local distribution zones in Nigeria.
(2)  The Authority shall, in the designation of local distribution zones,
adopt a national grid system.
(3) The grid system referred to in subregulation (2) shall be based on the
UTM system or any other projection system in use by the office of the Surveyor-
General of the Federation.
(4) The Authority shall establish a system for numbering of local distribution
zones which shall allow for subdivision and aggregation of the zones.
Objectives
Application
Prohibition
from
undertaking
gas
distribution
without a
licence
Authority to
designate
local
distribution
zones