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FG inaugurates new gas transportation network code

Timipre Sylva, Minister of State for Petroleum Resources

By Edith Ike-Eboh

The Federal Government has inaugurated a new Nigerian Gas Transportation Network Code (NGTNC) to enhance gas production and revenue generation in the country.

The Minister of State for Petroleum Resources, Chief Timipre Sylva inaugurated the code at the opening of the Nigeria International Petroleum Summit (NIPS) in Abuja on Monday.

He said that the code would help to guide gas transporters and suppliers as 2020 had been declared the year of gas.

“On Feb. 10, the Nigerian Gas Transportation Network Code shall apply to all gas transportation arrangements between gas transporters and gas shippers 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.

“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,’’ he said.

The minister noted that the directives would be transmitted to all stakeholders by the Director of Petroleum Resources for immediate compliance.

He reiterated the immense opportunities that Nigeria’s Gas Resource affords with our Gas Reserves position at 200.79 Trillion Cubic Feet (TCF) as at January 1, 2019.

According to him, the drive to optimally explore and produce the resource is driving government’s aspirations for energy security, economic diversification, job creation and enhanced revenue generation.

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“Gas and its derivatives as envisaged in the National Gas Policy will 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,’’ he added.

Sylva noted that the Network Code would guarantee open access to the Network, adding that 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.

He said that 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.

“Also, the Code will stimulate the domestic gas market, drive gas-based industrialisation and the realisation of government’s aspiration to move 100 million Nigerians out of poverty.

“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.’’ (NAN)




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