The Federal Government yesterday launched a new National Gas Transportation Network Code (NGTNC) as part of efforts to stimulate the domestic gas market, drive gas-powered industrialisation nationwide.
The Minister of State for Petroleum Resources, Chief Timipre Sylva, who announced the formal commencement of the NGTNC implementation at the Nigeria International Petroleum Summit (NIPS) in Abuja, said the launch was sequel to the declaration of 2020 as the year of gas for Nigeria. He said government’s policy directions were geared towards addressing the lingering challenges hindering gas infrastructure development.
The minister said 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.Sylva explained that the Code would provide open and competitive access to gas transportation infrastructure and development of the Nigerian Gas Sector adding that the Code in its current form has in-built modification mechanisms that can be reviewed periodically. He said: “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.
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. “All new and intending users shall make use of the Network based on the terms and conditions provided In the Network Code,” the minister added.
He clarified further that 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, the “ancillary Agreements are negotiated by the relevant parties.” According to him, the directives will be transmitted to all stakeholders by the Director of the Department of Petroleum Resources for immediate compliance.
