The federal government has set the possession of distribution pipeline as a criterion for issuance of licences to gas distribution firms.
The government said it will no longer issue licences to gas companies that lack the capacity to construct the pipelines.
Minister of Resources (Gas), Ekperikpe Ekpo, made this known in a statement on Thursday, in Abeokuta, in 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, suffered a brake failure, rammed into the road barricade and went up in flames, killing one person and razing some vehicles.
Ekpo said he was in the state to investigate the primary cause of the incident and express condolences to the people of Ogun State.
He said the Chief Executive of the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA), Farouk Ahmed, had already been instructed to refrain from issuing licenses to entities unable to pipe CNG to end users.
Ekpo, however, noted that despite the incident, CNG remains a better alternative to petrol and urged Nigerians not to be discouraged.
