HomeIndustry SectorsBusiness and marketsNigerian gas transportation network code to boost delivery

Nigerian gas transportation network code to boost delivery

The Nigerian National Petroleum Corporation (NNPC) has inaugurated the Nigerian gas transportation network code (NGTNC) to boost the domestic gas market.

While launching the network code, the Group managing director of NNPC, Mallam Mele Kyari, restated its commitment to working with relevant partners and stakeholders in the oil and gas sector to boost delivery of gas to the domestic market. 

Kyari said the corporation was at the centre of gas delivery to the domestic market, stressing that it was involved in all the available gas delivery infrastructure in the country either directly or indirectly through joint venture partnership. 

The NGTNC was announced in February, but the existing users of the gas network got six months to migrate from existing Gas Transportation Agreements to the network code.

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. The code aims to provide open and competitive access to gas transportation infrastructure.

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Speaking on the significance of the network code, the minister of state for petroleum resources, chief Timipre Sylva, said it would help to grow gas infrastructure, expand gas utilisation, curb gas flaring, and provide codes to standardise the gas value chain in line with global best practices.

The Minister said the NGTNC was part of the key reforms instituted by the President Muhammadu Buhari Administration to expand domestic gas-to-power, gas-to-industry, gas-to-manufacturing and mitigate the challenge associated with gas flaring in the country.

He noted that the gas codes would go a long way in deepening economic development, improve gas supply, boost liquefied petroleum gas supply, and attract more investment opportunities in the nation’s gas value chain.

Gas transportation framework

“We will continue to give our support to this process to ensure that the full delivery of this process is achieved. We commit to working closely with the DPR to ensure that the target of the government is attained. This opportunity has provided the right framework for the transportation of gas from the source to the end-user in order to get value,” said Kyari.

He added: “We are happy to have this framework on ground and we are ready to collaborate with all our partners, the gas off-takers, gas producers, transportation companies, shippers, and all those involved in the gas value chain.”

The highlight of the ceremony was the unveiling of the Network Code Electronic Licensing and Administrative System (NCELAS) portal and the supervision of the signing of framework agreements between NGC, Gas Hub, and Dangote Fertilizer Limited by the Minister of State for Petroleum Resources.

The Nigerian Gas Company will serve as the transporter while Gas Hub and Dangote Fertilizer Limited will serve as the shippers, with the Gas Aggregation Company of Nigeria Limited (GACN) in the role of agent as provided by the framework.

Babalwa Bungane
Babalwa Bungane is the content producer for ESI Africa - Clarion Events Africa. Babalwa has been writing for the publication for over five years. She also contributes to sister publications; Smart Energy International and Power Engineering International. Babalwa is a social media enthusiast.