12 Oct 2020

FG rolls out guidelines for operations of downstream gas facilities

The Department of Petroleum Resources, DPR, yesterday, released guidelines for the establishment and operations of downstream gas facilities across the country, stating that companies seeking to establish gas-dispensing facilities would be required to obtain three approvals and licences, among others, before commencing operations.

This is coming days after the gas explosion at Baruwa, Ipaja, Lagos, which claimed several lives and destroyed over 20 properties.   In a statement in Abuja, Director of Petroleum Resources, Mr. Sarki Auwalu, disclosed that the DPR had commenced investigation into the unfortunate incident, why he also commiserated with victims of the explosion.

He informed that 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.

On the guidelines for establishment and operations of downstream gas facilities, the chief executive of the DPR said it stipulates 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.

According to him, it 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. “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 –www.dpr.gov.ng by stakeholders and investors alike.