The Minister of State for Petroleum Resources in Nigeria, Chief Timipriye Sylva has said that the National Gas Transportation Network Code (NGTNC), will help to realized the Federal Government’s aspiration of moving 100 million Nigerians out of poverty.
Chief Sylva stated this in his welcome address during the launching of the Nigeria Gas Transportation Network Code at Abuja today.
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He said the immense opportunities that Nigeria’s Gas Resource affords with Gas Reserves position at 200.79 Trillion Cubic Feet (TCF) as at 1st January 2019, and 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.
He explained that gas and its derivatives as envisaged in the National Gas Policy would catalyse Nigeria’s economic growth and the need for gas transportation infrastructure has to be put in place for the sector to develop.
He revealed that FGN’s policy directions are geared towards addressing the infrastructural challenge and that 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.
According to the him, “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.
“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 industrialization and the realisation of the Government’s aspiration to move 100 million Nigerians out of poverty”.
Chief Sylva further explained that the Code in its current form has in-built modification mechanisms assuring all stakeholders of periodic review of the Network Code to suit the dynamics of the industry.
While launching the NGTNC, the minister read out guideline as follows,
i. 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.
ii. 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.
ill. All new and intending users shall make use of the Network based on the terms and conditions provided in the Network Code.
iv. 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.
He added that the directives will be transmitted to all stakeholders by the Director of Petroleum Resources for immediate compliance.