Launching the much anticipated Nigerian Gas Transportation Network Code (NGTNC) in Abuja this week, the Minister of State for Petroleum Resources, Chief Timipre Sylva, further revealed that the code was effected as of 10 February 2020.
Sylva said the code will apply to all gas transportation arrangements between gas transporter and gas shipper as defined in it.
Local media THISDAY cited the minister stating that the transporter and all existing users of the transportation network shall, within six months of the date of the directive, migrate from existing Gas Transportation Agreements to the network code by executing the necessary ancillary agreements.
“Accordingly, the Nigerian Gas Master Plan (NGMP), the National Domestic Gas Supply 8: Pricing Regulation, 2008 (Section 2 (F and G), and the National Gas Policy 2017 (Section 4.3.3) all stipulate the introduction of Gas Transportation Network Code to guarantee open access to the Network.
“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.
“Consequently, in line with government's policy to reinforce and expand gas supply and stimulate demand through the National Gas Expansion Programme, the Code will provide open and competitive access to gas transportation Infrastructure and development of the Nigerian Gas Sector.
“Also, the Code will stimulate the domestic gas market, drive gas-based industrialisation and the realisation of the government's aspiration to move 100 million Nigerians out of poverty. The code in its current form has in-built modification mechanisms. Hence, all stakeholders are assured of the periodic review of the network code to suit the dynamics of the industry.”
Sylva disclosed that his ministry will send a new Petroleum Industry Bill to parliament next week, aiming to pass it into law by mid-2020.