NMDPRA presents Gas Trading Authorization License to Jex Markets Ltd
Orisemeke Benjamin
Authority Chief Executive Officer, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) Engr. Farouk Ahmed, has presented a Gas Trading License (GTL) and Clearing House and settlement Authorization to Jex Markets Limited.
In his speech at the Gas Trading License and Clearing House Authorization presentation ceremony Thursday in Abuja, Authority Chief Executive, said it is in compliance with the provisions of section 159 of the Petroleum Industry Act (PIA) for the trading and settlement of Wholesale gas in Nigeria.
The Electronic Gas Trading and Exchange platform was developed by seasoned industry professionals in collaboration with the Authority to revolutionise Nigeria’s gas and energy markets. It is designed to connect buyers and sellers in seamless natural gas transactions, transparent pricing, efficient price discovery, secured payment system and broad access to market information on a timely basis.
This fully aligns with Nigeria’s energy policies, regulatory frameworks and global best practice in addition to deepening domestic and regional utilisation, thereby supporting growth and sustainability of the gas sector.
He said: “It is my pleasure and honor to welcome you to yet another regulatory milestone in our journey towards the bold transformation of our gas market into a transparent, efficient and inclusive ecosystem in this strategic decade of gas.
“The implementation and full operationalization of this provision of the PIA will further unlock the extensive opportunity and investment potentials of the gas Industry through the improved supply and utilisation of the country’s vast gas resource in our strategic economic sectors of power, Industry and transportation.”
Engr. Ahmed noted that despite its abundant gas reserves, the country’s gas market continues to be constrained by high transaction costs, pricing opacity among several others.
“Yet, despite this wealth, our domestic gas market has remained underdeveloped and constrained by pricing opacity, high transaction costs, limited flexibility, market illiquidity, poor sanctity of gas contracts, restricted access to gas and low investments in the sector,” he said.
He explained that the Gas Trading Licence and other relevant regulatory instruments administered by the Authority continues to promote the sustainable development of the gas markets through the application of global best practices that is ensuring: Transparency and efficiency; price discovery and reporting; safe and reliable market trading practices; and automated online and real-time market trading among others.
“As the regulator of Nigeria’s midstream and downstream petroleum sector, the Authority recognizes that the true test of licensing JEX Markets is not in the ceremony of today, but in the transformation it must deliver tomorrow. To ensure that JEX succeeds as Nigeria’s pioneering gas trading, clearing and settlement platform, we will provide a firm, transparent and technology‑enabled regulatory framework under the PIA, giving investors the certainty and confidence required to commit long‑term capital to the gas value chain.
“Above all, we will position JEX as a strategic national platform within our Decade of Gas agenda to enable regional integration and cross‑border trade and firmly establish Nigeria not only as a leading gas producer, but as Africa’s reference market for gas trading and pricing.
“JEX will only achieve the objectives of this licence through shared ownership by the entire industry, working in partnership with the regulators to deliver transparency, investment, and lasting economic value to the Nigerian people,” the Authority Chief Executive said.
