The Department of Petroleum Resources, DPR, Sunday released guidelines for the establishment and operations of downstream gas facilities across the country.

In the new guideline, companies seeking to establish gas-dispensing facilities would be required to obtain three approvals and licences, among others, before commencing operations.

The regulatory agency in a statement noted that the guidelines among others stipulate the minimum requirements, procedures and conditions to be fulfilled before the grant of approvals or licences for the construction, installation, modification, takeover, relocation and operations of downstream gas facilities in Nigeria.

[Also Read] FG set to launch new guidelines for oil and gas industry

The Director of Petroleum Resources, Mr Sarki Auwalu in a statement on Sunday said the new directive include guidelines for the establishment and operations of Liquefied Petroleum Gas, LPG, also known as cooking gas, refilling plants and retail outlets; guidelines for establishment of auto gas refuelling stations and add-on gas facility; and guidelines for the establishment of gas storage and utilization.

Auwalu explained that the guidelines were developed to enhance gas penetration and utilization, enhance operational safety as well as ease of doing business in the oil and gas sector.

He said, “Companies intending to establish these facilities must satisfy all necessary requirements stipulated by DPR and obtain the underlisted applicable approvals: Site suitability approval; Approval to Construct (ATC)/Approval to Install; and Licence to Operate.

[Also Read] CBN Issues Guidelines for N250bn Gas Sector Value Chain Stimulation

“Necessary amenities and equipment’s like functional automated/manual leak tester, functional fire alarm system, and mounted gas detectors, adequate fire water storage and sprinklers, perimeter fence with fire wall amongst others must be provided in the facilities.”

He stated that the objectives of the guidelines was to ensure that the baseline standard regarding Health, Safety and Environment, HSE, was achieved and maintained in all the facilities and that further details can be accessed from the Departments website by stakeholders and investors alike.

The DPR’s latest move is believed to have been prompted by the incidents of gas explosions in the country that claimed several lives and destroyed properties worth millions of Naira.

Recall that few days ago, gas explosion at Baruwa, Ipaja, Lagos, claimed several lives and destroyed over 20 properties.

The DPR boss on Sunday Auwalu disclosed that the DPR had commenced investigation into the unfortunate incident. He also commiserated with victims of the explosion.

[Also Read] Critical Notes for Firms Listing in Nigeria’s Marginal Fields Licensing Rounds

He hinted that the preliminary reports from DPR investigations, revealed that the facility was operating without licence and was carrying out illegal operations which resulted in the unfortunate incident.

He promised that the DPR would continue to update the public on the progress of its ongoing investigation into the incident while assuring that the department will continue to collaborate with all stakeholders to ensure safe operations of all oil and gas facilities in Nigeria.

By Peace Obi.

Be the first to know when we publish an update

More Nigeria Oil and Gas Industry News on Orient Energy Review.

Be the first to know when we publish an update

Leave a Reply