Dr Timipre Slyva, Nigeria’s minister of state for petroleum resources, has launched the National Gas Transportation Network Code on 2020 at the opening day of the third edition of the Nigerian International Petroleum Summit (NIPS 2020) in Abuja
The gas network code, according to the minister, stipulates terms and guidelines of gas transportation, specifically applying between gas producers, shippers and their agents. Its provisions allow a window of six months for legacy agreements to migrate onto the network code while new and intending agreements are expected to align with the new code.
Expressing the happiness on her association at the launching of the code, Audrey Joe-Ezigbo, president of the Nigerian Gas Association (NGA), added that it will help Nigeria become a mature gas market.
“The code will attract more investors into pipeline infrastructure,” said Joe-Ezigbo.
Speaking during a panel session on the heels of the launch, Abel Nsa, assistant director, Department of Petroleum Resources (DPR), explained that the network code is a set of rules and contractual framework between producers and transporters.
“It provides transparency and a level playing field for everyone who wants to come into the gas system. It is like a protocol to move gas within the system,” Nsa added.
Nigeria is Africa’s largest oil producer and a strong member of the Organisation of Oil Exporting Countries (OPEC). With around 2.5 million crude oil production capacity, the country has huge gas reserves. According to data from the Nigerian National Petroleum Corporation (NNPC), the country has around 202 trillion cubic feet (tcf) of proven gas reserves plus about 600 tcf unproven gas reserves. Up till now, this gas had been largely undeveloped with huge chunk flared and the government-owned Nigerian Gas Company (NGC), a sole operator providing pipeline infrastructure in the Nigerian gas market.
However, Dr Salihu Jamari, managing director of the Nigerian Gas Company (NGC), noted that his company has been upgrading its facilities in expectation of the launching of the network code.
“We are making sure that metering is available at every point in the network. The NGC is very much aware of its role in the implementation of the network code,” Jamari stated.
Over the years, the country’s relatively smaller oil reserves have been the major focus for government and international oil companies in the country who find it easier and more profitable to produce oil rather than gas. Government in recent years stepped up its effort to support gas development, grow the economy by opening the gas market through export and encourage domestic use of gas in power generation and household use.
