Mr Justice Derefaka ,Technical Adviser, Gas Business and Policy Implementation to the Minister of State for Petroleum, says implementation of the National Gas Transportation Network Code (NGTNC) will help Nigeria realise its gas potential.
Derefaka, who is also the Programme Manager, Nigerian Gas Flare Commercialisation Programme (NGFCP), made the assertion in a statement made available to the News Agency of Nigeria (NAN) on Monday in Lagos.
NAN reports that the NGTNC was on Monday inaugurated by the Department of Petroleum Resources (DPR) and the Federal Ministry of Petroleum Resources at the ongoing Third edition of Nigeria International Petroleum Summit (NIPS 2020) in Abuja.
Derefaka described the move as the best New Year gift to the gas sector and the international investor community.
He said it was a testament to the Minister of State, Petroleum, Chief Timipre Sylva’s declaration of the year 2020 as the ‘Year of Gas’.
According to him, the National Gas Policy 2017, the Nigerian Gas Master Plan and the National Gas Supply and Pricing Regulation 2008, all recommended the introduction of the NGTNC, also known as “Network Code”.
He said this was necessary to stimulate the multiplier effect of gas in the domestic economy, position Nigeria competitively in high value export markets, and guarantee long-term energy security in the country.
“The network code is a gas market liberalisation enabler aimed at ensuring gas pipeline integrity and open access to pipeline and common understanding on metering with a set of rules and protocols.
“These are designed to govern the operations of gas network players in a way that impacts the gas market, as part of efforts toward transparency and efficiency in the operation of pipelines in the country.
“The code will ensure transparency in the industry, guarantee fair and non-discriminatory access to gas transportation network and attract foreign investors.
“It will also help to ensure that wrong gas does not go into the pipeline and ensure growth and development in the Nigerian gas industry,” Derefaka said.
According to him, the network code aims to harmonise gas balancing arrangements to support the completion and functioning of Nigerian gas market, the security of supply and appropriate access to the relevant information in order to facilitate trade.
He explained that the network code would also enable new ways of doing business in the Nigerian domestic gas market.
Derefaka noted that every gas meant for domestic use, either for power, petrochemical or industrial, would have a single entry and exit point to cut short the sharp practices prevalent in the current supply and distribution system.
He said : “The gas network code has been long overdue and the whole industry has anticipated the network code and expect to see it come on stream soon.
“From an investor perspective, it assures that when they invest, their gas will be operated in best practices and help in boosting the confidence of international financiers because they are always concerned about things being done properly.
“I believe the network code can assist us as a nation to realise our potential and reap the vast benefits of a secure, fully implemented internal gas market for all its citizens.