FG launches new network code on gas transportation

The federal government has launched the gas transportation network code and urged all stakeholders in the midstream sector of the oil and gas industry to key into it.

Minister of State for Petroleum Resources, Chief Timipre Sylva, who was speaking during the ongoing Nigeria international petroleum summit in Abuja on Monday, said that the development is part of government’s efforts aimed at increasing domestic gas utilisation and resolving the challenges of the poor gas transportation network,

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The minister stated that 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.

“Effective February 10, 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.

“In light of the above, our policy directions are geared towards addressing the infrastructural challenge. Accordingly, the Nigerian gas master plan, 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 the 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,” Sylva stated. 

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Ihesiulo Grace

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