FG Gives Operators Six Months to Migrate to New Gas Transport Code

Timipre Sylva

Stories by Chineme Okafor in Abuja
The federal government has disclosed that it can only give operators in Nigeria’s gas market the grace of six months to migrate their existing gas transport agreements to the new network code it recently approved and activated.

The Minister of State for Petroleum Resources, Mr. Timipre Sylva said this during the online launch of the Nigeria Gas Transportation Network Code (NGTNC).

Sylva, stated that the government was keen on developing Nigeria’s gas sector, and as such has initiated measures in this regard. According to him, the NGTNC is one of such measures.

He noted that, “that the implementation of the network code, which is a set of rules and principles guiding the use and operations of the gas transportation network system, will deepen the domestic gas market and unleash the potentials of accelerated growth and economic development for our dear nation,” and thus expect operators to adopt it.

“In the coming months, this code, together with related interventions, will enable improved gas supply to power, growth of Gas Based Industries (GBIs), domestic LNG, LPG and CNG penetration as well as enhance revenue to government and create investment opportunities for our people.

“Further to unveiling the network code licensing and administration system and the signing of these framework agreements, I direct that the following should be implemented for the network code: migrate all extant gas transportation agreements into the NC within 6 months; all new open access gas transportation be conducted through the NGTNC to optimise the performance of the network code in the Nigerian gas sector.”

The minister also requested the network code be expanded to cover open access gas transportation across Nigeria.
He further explained that the government was confident its gas-based policies would be fruitful, and able to support the country’s economy.

“Following the declaration of 2020 as year-of-gas, this administration is driving key policy and regulatory initiatives that will enhance gas reserves growth to support domestic and export projects, expand domestic gas supply and address the perennial challenge of gas flaring with its attendant waste and environmental impact,” he added.

The aggregate impact of the three-anchor programme on gas, namely the Nigerian Gas Transportation Network Code (NGTNC), National Gas Expansion Programme (NGEP) and Nigerian Gas Flare Commercialisation Programme (NGFCP), will help achieve the presidential mandate of gas penetration, gas-based industrialisation and economic diversification, he added.