By Francis Ogwo
The National Gas Transportation Network Code (NGTNC) has been planned to “Go-Live” on Monday.
This was according to the Technical Adviser, Gas Business and Policy Implementation to Minister of State for Petroleum Resources, Justice Derefaka, on Saturday in Lagos.
According to Derefaka, who is also Programme Manager, Nigerian Gas Flare Commercialisation Programme (NGFCP), the move would improve the consumption and utilisation of gas in Nigeria.
Recall that the NGTNC, which is also known as the ” Network Code”, was inaugurated on February 10 by the Minister of State for Petroleum Resources, Chief Timipre Sylva.
Chief Sylva said it shall apply to all gas transportation arrangements between gas transporter and gas shipper as defined in it.
Under the arrangements, according to Sylva, 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.” Sylva added.
Derefaka added that the Network Code, as enshrined in the National Gas Policy (2017), forms a vital part of government’s strategic plan for the improvement of the country’s domestic gas obligation as well as promotion while also noting that the review of the Network Code licensing framework and development of all its ancillary agreements have been firmed.
In his words, “It is a major policy thrust of government to unlocking the potential of gas as a resource and revenue earner for Nigeria, which has declared 2020 as ‘the Year of Gas’.
“President Muhammadu Buhari (Minister of Petroleum Resources) and Sylva are very passionate about it.
“It is believed that the implementation of the code would provide for investors in gas, the confidence to invest heavily in the sector and enable Nigeria to consolidate on the multiplier effect of gas on the economy.”
He stated that “The Network Code will also enable new ways of doing business in the Nigerian domestic gas market.
“Every gas meant for domestic use either for power, petrochemical or industrial, will have a single entry and exit point to cut short the sharp practices prevalent in the current supply and distribution system.
He said the Go-Live of the Network code would open up new developments in the gas supply chain including intensification of gas use in the transportation sector (in both Liquefied Natural Gas and Compressed Natural Gas forms).
Derefaka added that Nigeria’s carbon emissions and deforestation would be reduced with increased usage of Liquefied Petroleum Gas for cooking.
