New gas code’ll drive infrastructure devt

In a bid to drive its energy security, economic diversification and job creation aspiration, the federal government on Monday launched the Nigerian Gas Transportation Network Code (NGTNC).

The Minister of State for Petroleum Resources, Chief Timipre Sylva, who launched the programme at the Nigerian International Petroleum Summit in Abuja, said the launch of the code will not only enhance revenue generation but act as a catalyst for economic growth and the development of the country’s gas infrastructure.

Network Code is expected to guarantee open access to the Network. The Code is 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.

Nigeria’s Gas Reserves as at 1st January 2019 stood at 200.79 Trillion Cubic Feet (TCF).

“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. Also, the Code will 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.

“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,” Sylva said.

The Minister said the NGTNC shall apply to all gas transportation arrangements between gas transporter and gas shipper as defined in the Code as it expects all transporters and all existing users of the transportation network to migrate from existing Gas Transportation Agreements to the Network Code by executing the necessary Ancillary Agreements within six months of the launch.

In addition, all new and intending users shall make use of the Network based on the terms and conditions provided in the Network Code. Accordingly, 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,” Sylva added.

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