By Chimezie Godfrey
The Minister of State for Petroleum Resources, Timipre Sylva has launched the Gas Transportation Network Code which he said will stimulate the domestic gas market, and the realization of the government’s aspiration to move 100 million Nigerians out of poverty.
The Minister stated this Monday in Abuja during the opening ceremony of the 3rd edition of the Nigerian International Petroleum Summit 2020 with the theme, “Widening the Integration Circle, Technology, Knowledge, Sustainability, and Partnership.”
He noted that the President Buhari’s administration’s policy direction is geared towards addressing the infrastructural challenges in the country.
Sylva pointed out that the Nigerian Gas Master Plan (NGMP), the National Domestic Gas Supply and Pricing Regulation, 2008(Section 2(f&g), and the National Gas Policy 2017 (Section 4.3.3) all stipulate the introduction of Gas Transportion Network Code to guarantee open access to the Network.
He added that 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.
He disclosed that 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 industrialization and the realization 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.
“The gas Network Code is hereby launched as follows.
“Effective 10th day of February, 2020, the Nigerian Gas Transportation Network Code shall apply to all gas transportation arrangements between gas transporter and gas shipper as defined in the Code.
“The transporter and all existing users of the transportation network shall, within six (6) months of the date of this directive, migrate from existing gas transportation agreements to the Network Code by executing the necessary ancillary arrangements.
“All new and interesting users shall make use of the Network based on the terms and conditions provided in the Network Code.
“While the Network Code remains the uniform protocol for users of the gas transportation network and can only be modified in accordance with relevant provisions therein, the ancillary agreements are negotiated by the relevant parties,” he said.
The Minister further said that these directives will be transmitted to all stakeholders by the Director of Petroleum Resources for immediate compliance.
