Written by Godfrey AKON

FG launches NGTN code at NIPS 2020

The Federal Government has launched the National Gas Transportation Network, NGTNC, with on call on stakeholders to use the enormous gas deposits in Nigeria to grow the nation’s economy.

Minister of State for Petroleum Resources, Chief Timipre Sylva, who launched the network code at the 3rd edition of the Nigerian International Petroleum Summit, NIPS 2020, in Abuja, said th code stipulates terms and guidelines of gas transportation, specifically applying between gas producers, shippers and their agents.

Sylva said 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.

Speaking at a panel session following the launch of the gas network code, Assistant Director, Department of Petroleum Resources, DPR, Abel Nsa, 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 said.

Also speaking, President of the Nigerian Gas Association, NGA, Mrs. Audrey Joe-Ezigbo, said the code will attract more investors into pipeline infrastructure.

Up till now, the Nigerian Gas Company, NGC, has remained a sole operator providing pipeline infrastructure in the Nigerian gas market.

While contributing, the Managing Director of the Nigerian Gas Company, NGC, Dr. Salihu Jamari, noted that his company has been upgrading its facilities in expectation of the launch of the network code.

“We are making sure that metering is available at every point in the network. The Nigerian Gas Company is very much aware of its role in the implementation of the network code,” Jamari stated.   

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.

Over the years, the country’s relatively smaller oil reserves has 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.

 

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