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Published On: Tue, Feb 11th, 2020

FG launches Gas Transportation Network Code, as reserves hit 200.79trn TCF

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By Etuka Sunday

The Federal Government yesterday launched Nigerian Gas Transportation Network Code (NGTNC), as the nation’s gas reserves hit 200.79tillion Cubic Feet (TCF).
FG said, the Code was 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.
Launching the Code at the ongoing Nigeria International Petroleum Summit (NIPS), Abuja, Nigeria, the Minister of State for Petroleum Resources, Chief Timipre Sylva said, the Code would stimulate the domestic Gas market, drive gas-based industrialisation and the realisation of the Govemment’s aspiration to move 100 million Nigerians out of poverty.
Chief Sylva said, in line with Government’s policy to reinforce and expand gas supply and stimulate demand through the National Gas Expansion Programme, the Code would provide open and competitive access to gas transportation Infrastructure and development of the Nigerian Gas Sector.
He said, the Code in its current form has in-built modification mechanisms. Hence, all stakeholders are assured of the periodic review of the Network Code to suit the dynamics of the industry.
The Minister said, “the drive to optimally explore and produce this resource is driving govemment’s aspirations for energy security, economic diversification, job creation and enhanced revenue generation.
“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.
“The Gas Network Code is hereby launched as follows: 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 (6) 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 lntendlng 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.
“These Directives will be transmitted to all stakeholders by the Director of Petroleum Resources for immediate compliance,” he said.

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