FG issues gas trading license for transparent pricing

The Federal government has presented a Gas Trading License (GTL) and a Clearing House and settlement Authorization to Jex Markets Limited for the trading and settlement of Wholesale gas in Nigeria. Speaking during the presentation and signing of agreement yesterday in Abuja, the Authority Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority […]

The Federal government has presented a Gas Trading License (GTL) and a Clearing House and settlement Authorization to Jex Markets Limited for the trading and settlement of Wholesale gas in Nigeria.

Speaking during the presentation and signing of agreement yesterday in Abuja, the Authority Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Engr. Farouk Ahmed, said the implementation and full operationalization of this provision of the PIA will further unlock the extensive opportunity and investment potentials of safe and reliable market trading practices.

Ahmed said the licence and other relevant regulatory instruments administered by the NMDPRA have continued to promote the sustainable development of the gas markets through the application of global best practices that is ensuring transparency and efficiency and price discovery and reporting.

He added that the project would allow automated online and real-time market trading.

“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.”

The Director General, Securities and Exchange Commission (SEC), Emomotimi Agama, said the platform will generate a credible, market-driven Nigeria Gas Price Index, reflecting true domestic and regional demand and supply.

“This eliminates opacity, fosters fair pricing, and builds confidence among producers, transporters, and consumers. Licensed trading houses will act as market makers, bringing liquidity and enabling efficient risk management through standardized contracts. This attracts capital and turns gas into a dynamic asset class.”

On his part, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, said the license itself is founded upon sound regulations and guidelines governing technical competence, commercial capability, financial soundness, and responsible operations.

“Among the responsibilities of the licence holders is the adherence to the various rules on gas measurement, tariffs, pricing, and assignments. It will make gas sale and procurement agreements more trustworthy for the generation, industry, commercial, and large-scale sectors by only letting trusted counterparties into the trading environment.”