The Minister of Resources (Gas), Ekperikpe Ekpo, has said that the Federal Government will cease to issue licenses to gas companies that lack the capability to construct pipelines for distribution.
Ekpo made this statement on Thursday following the aftermath of the gas explosion which claimed a life in Abeokuta, the Ogun State capital, last Saturday.
A compressed natural gas (CNG) truck owned by Gasco Marine, which had suffered a brake failure, rammed into the road barricade and went up in flames, killing one person and razing some vehicles.
Upon his arrival in the state, where he was welcomed by Governor Dapo Abiodun and his deputy, Noimot Salako-Oyedele, Ekpo mentioned that President Bola Tinubu had sent him to investigate the primary cause of the incident and express condolences to the people of Ogun State.
He stated that while the country needs to transition from fossil fuel to CNG, he had instructed Farouk Ahmed, Chief Executive of the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA), to refrain from issuing licenses to entities unable to pipe CNG to end users.
Ekpo stressed that despite the incident, CNG remains a better alternative to petrol, urging Nigerians not to be discouraged.