Axxela Secures Gas Distribution Licenses for Lagos and Port Harcourt to Boost Domestic Gas Utilisation

Axxela Limited, a leading gas and power company in sub-Saharan Africa, has been awarded gas distribution licenses for its subsidiaries—Gaslink Nigeria Limited and Central Horizon Gas Company Limited (CHGC)—by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). This move aims to expand gas distribution infrastructure and accelerate domestic gas utilization in Nigeria.

The licenses cover two key industrial hubs:

  • Greater Lagos Industrial Area Gas Distribution Zone, jointly awarded to Gaslink Nigeria Limited & NNPC Gas Marketing Limited, with an installed capacity of 130 million standard cubic feet per day (MMSCF/D).
  • Port Harcourt Cluster 2 Gas Distribution Zone, awarded to CHGC, with an installed capacity of 50 MMSCF/D for the Greater Port Harcourt Area.

According to Kehinde Alabi, Managing Director of Axxela Gas Distribution, the milestone reinforces Axxela’s commitment to positioning natural gas as a key driver of economic resilience and environmental sustainability.

“At Axxela, we believe in the transformative power of natural gas. Through strategic collaboration with the government, regulators, and key industry players, we will continue to promote gas as a sustainable energy alternative for the future,” Alabi said.

Speaking at the event, Engr. Farouk Ahmed, Authority Chief Executive of NMDPRA, noted that the awarded licenses will cater to over 500 customers, with a cumulative gas distribution capacity of approximately 1.5 billion standard cubic feet per day (bscf/d) and an extensive 1,200km gas distribution pipeline network. He commended the licensees for their pioneering role in advancing Nigeria’s gas sector.

This development aligns with the Federal Government’s vision of transitioning Nigeria into a gas-powered economy, improving access to cleaner, affordable energy while attracting fresh investments in critical gas infrastructure for national economic growth.

As a pioneer in private-sector natural gas solutions, Axxela Limited—co-owned by Helios Investment Partners LLP and Sojitz Corporation—has built over 360km of gas pipeline infrastructure, serving around 200 industrial and commercial customers through its subsidiaries. The company is also a designated natural gas shipper on the West African Gas Pipeline (WAGP) and a member of the West African Power Pool (WAPP).

This latest milestone signals a new phase of growth in Nigeria’s domestic gas market, reinforcing the country’s position as a major player in the global energy transition.

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