FG launches Nigerian Gas Transportation Network Code

Timipre Sylva

As part of its efforts at increasing domestic gas utilisation in Nigeria and resolving the challenges of the poor gas transportation network, the Federal Government has launched Gas Transportation Network Code and urged all stakeholders in the midstream sector of the oil and gas industry to key into it.

Speaking during the ongoing Nigeria International Petroleum Summit (NIPS), in Abuja on Monday, the Minister of State for Petroleum Resources, Chief Timipre Sylva, stated that the Code ls a contractual framework between the gas transportation network operator and gas shippers that specifies the terms and guidelines for Operation and use of the Gas Network.

According to him, “effective 10th day of February 2020, the Nigerian Gas Transportation Network Code shall apply to all gas transportation arrangements between gas transporter and gas shipper as defined in the Code.

”The transporter and all existing users of the transportation network shall, within six months of the date of this Directive, migrate from existing Gas Transportation Agreements to the Network Code by executing the necessary Ancillary Agreements.

”All new and intending users shall make use of the Network based on the terms and conditions provided In the Network Code. While the Network Code remains the uniform protocol for users of the Gas Transportation Network and can only be modified in accordance with relevant provisions therein, the Ancillary Agreements are negotiated by the relevant parties.

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”These Directives will be transmitted to all stakeholders by the Director of Petroleum Resources for immediate compliance.”

Sylva argued that the Code will stimulate the domestic gas market, drive gas-based industrialisation and the realisation of the Government’s aspiration to move 100 million Nigerians out of poverty.

“Gas and its derivatives as envisaged in the National Gas Policy would surely catalyse our economic growth and the need for gas transportation infrastructure has, to a large extent, to be put in place for the sector to develop.

“In light of the above, our policy directions are geared towards addressing the infrastructural challenge. Accordingly, the Nigerian Gas Master Plan (NGMP), the National Domestic Gas Supply 8: Pricing Regulation, 2008 (Section 2 (f & g), and the National Gas Policy 2017 (Section 4.3.3) all stipulate the introduction of Gas Transportation Network Code to guarantee open access to the Network.

“Consequently, in line with Government’s policy to reinforce and expand gas supply and stimulate demand through the National Gas Expansion Programme, the Code will provide open and competitive access to gas transportation Infrastructure and development of the Nigerian Gas Sector.”