Buhari assures foreign oil firms of high returns
The federal government yesterday formally launched the long awaited Nigerian Gas Transportation Network Code (NGTNC) and also declared year 2020 as a year of gas for the country.
This is coming as President Muhammadu Buhari has assured foreign oil companies of high returns on their investments in Nigeria.
While launching the NGTNC at the third edition of the Nigerian International Petroleum Summit (NIPS) in Abuja,, the Minister of State for Petroleum Resources, Chief Timipre Sylva, said the code had become effective from February 10, 2020, saying it shall apply to all gas transportation arrangements between gas transporter and gas shipper as defined in it.
According to Sylva, the transporter and all existing users of the transportation network shall, within six months of the date of the directive, migrate from existing Gas Transportation Agreements to the network code by executing the necessary ancillary agreements.
“Accordingly, the Nigerian Gas Master Plan (NGMP), the National Domestic Gas Supply 8: Pricing Regulation, 2008 (Section 2 (F and 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 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 industrialisation and the realisation of the 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”.
Sylva disclosed that his ministry will send a new Petroleum Industry Bill to parliament next week, aiming to pass it into law by mid-2020.
Declaring the third edition NIPS open, Buhari who was represented by the Secretary to the Government of the Federation (SGF), Mr. Boss Mustapha, assured foreign oil companies of high returns on their investments in Nigeria.
He said, “We are all aware of the great role the hydrocarbon industry plays in the economy of Africa, thus we cannot afford to compromise its technical, operational and financial standards.
“This is the reason why this administration has consistently promoted sector reforms aimed at the entrenchment of transparency in the conduct of the industry’s business, cost reduction, efficiency and attracting investments in the oil and gas value chain.”
Buhari said Nigeria, as an oil-producing nation, remained ready and accessible for legitimate investments from all interested countries, individuals and partners.
“Let me assure our foreign delegates that their investments are well secured in Nigeria and a high return on investment is always guaranteed. It can’t get better anywhere,” he added.