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GUIDELINES FOR WHOLESALE GAS AND PETROLEUM LIQUIDS SUPPLY OPERATIONS_GUIDE_2_2024

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Applicable to  
• 
Midstream and Downstream Petroleum 
Operators  
• 
Lease Holders 
GUIDELINES FOR WHOLESALE GAS AND PETROLEUM LIQUIDS SUPPLY 
OPERATIONS  
Code: NMDPRA Guide - 2 - 2024 
Revision Date: 9th September 2024 
 
 This is a property of the Nigerian Midstream and Downstream Petroleum Regulatory Authority.  All rights reserved  
1 
1 
INTRODUCTION  
1.1 
Background 
The introduction of wholesale gas and petroleum liquids supply operations is a key difference 
between the Petroleum Act of 1969 (PA) and the Petroleum Industry Act of 2021 (PIA). The 
previous regime of the Petroleum Act defined the industry on the basis of export of 
hydrocarbons produced, and the import of petroleum products. However, the PIA has 
established distinct midstream operations as a linkage in the petroleum streams to guarantee 
Nigeria’s energy security. The PIA stipulates that the powers conferred on a lessee by virtue 
of ownership of a petroleum/oil mining lease (PML/OML), no longer includes rights to export 
but is only limited to the production of hydrocarbon that will be ‘disposed of’ and supplied 
as feedstock to midstream operations. 
The Wholesale Gas Supply Licence (WGSL) and Wholesale Petroleum Liquids Supply Licence 
(WPLSL) are the appropriate licences for any qualified persons or entities willing to engage in 
the sale and delivery of natural gas and petroleum liquids (crude oil, condensate, petroleum 
products and natural gas liquids) to wholesale customers either for domestic use or exports, 
as applicable. The wholesale supply operations foster investment across the petroleum value 
chain, entrenches transparency in hydrocarbon measurement, provides tools for 
enforcement of domestic obligations, ensures arm’s length dealings for a level-playing field, 
and acts as a pathway for willing buyer – willing seller of Nigeria’s gas resources, amongst 
many other significant advantages. Figure 1 below shows the hydrocarbon supply value 
chain from point of production to wholesale customers as stipulated by the PIA. Appendix 1 
of these Guidelines depicts wholesale hydrocarbon supply in the context of the petroleum 
value chain.  
 
Flow Of Hydrocarbon: Producer - Wholesale Supplier - Wholesale Customer 
 
Production 
Wholesale Supply 
Wholesale Customer/Distributor  
Upstream 
Midstream  
Downstream 
 
 
 
Figure 1 Hydrocarbon Wholesale Supply Chain  
1.2 
Purpose  
The purpose of this document is to describe the terms, basis and procedures for obtaining 
licences, permits and other approvals or authorisations required under the Wholesale Gas 
Supply Licence (WGSL) and Wholesale Petroleum Liquids Supply Licence (WPLSL) and 
minimum requirements for carrying out operations under these Licences. These Guidelines 
are pursuant to the PIA, Midstream and Downstream Petroleum Operations Regulations 2023