Nigeria Launches Gas Network Code to Deepen Penetration
By Adedapo Adesanya
The federal government has inaugurated the Nigeria Gas Transportation Network Code (NGTNC) to deepen the growth of the gas market in the country.
In a statement, it was disclosed that the Minister of State for Petroleum Resources, Mr Timipre Sylva, disclosed this at the virtual launch of The Go-Live of the Nigerian Gas Transportation Network Code, in Abuja on Monday.
He said that following the declaration of 2020 as a year of gas, President Muhammadu Buhari’s administration was driving key policy and regulatory initiatives that would enhance gas reserves growth to support domestic and export project.
Mr Sylva said that another focus was to expand domestic gas supply and address the perennial challenges of gas flaring, with its attendant waste and environmental impact.
He said that the aggregate impact hangs on three anchor programmes on gas, namely the Nigerian Gas Transportation Network Code (NGTNC), National Gas Expansion Programme (NGEP) and Nigerian Gas Flare Commercialisation Programme (NGFCP).
This, he said, would help the sector achieve the presidential mandate of gas penetration, gas-based industrialisation, and economic diversification
“Specifically, it is my firm belief that the implementation of the network code, which is a set of rules and principles, guiding the use and operations of gas transportation network system, would deepen the domestic gas market.
“It will also unleash the potentials of accelerated growth and economic development for our nation. In the coming months, this code together with related interventions would enable an improved gas supply to power, growth of gas-based industries, domestic LNG, LPG and CNG penetration, as well as enhance revenue to the government and create investment opportunities for our people,” he said.
The Minister noted that the Department of Petroleum Resources had developed the Network Code Electronic Licensing and Administrative System (NCELAS), which would be used by the regulator to receive process and issue all applicable licenses to all network players as well as administer all regulatory roles required to ensure the optimal market impact.
“The NCELAS is a secured online environment that would provide optimum value for all stakeholders that would be operating under the network code.
“With the unveiling of the NCELAS and the execution of the network code framework agreement, the regime of gas transportation through a world-class network code would have been firmly established in Nigeria for the benefit of all stakeholders,” he said.
He said that the portal address for NCELAS is https://ncela.support.dpr.go.ng and www.dpr.gov.ng. and urged all stakeholders to effectively make use of the code to enhance their businesses.
Also speaking at the event, the Group Managing to Director of the Nigerian National Petroleum Corporation (NNPC), Mr Mele Kyari said that the code was an opportunity to widen the income source of gas in Nigeria.
He noted that the development was the beginning of progress in the gas sector.
On the part of the DPR, Director Sarki Auwalu said that the gas code will address gas flaring, grow infrastructure and expand the utilisation of gas in the country.
He said that the code would help to achieve the mandate of the year of gas as declared by the minister of state for Petroleum Resources.
“The code will guide the rules that govern the gas transportation system, secure gas transmission and ensure cost-effective tariff for pipeline management.
“The code will also help boost growth in the sector and six months from now, we will witness a lot of achievement,” he said.
He noted that the portal for licensing will ensure enterprise structure and will serve as a one-stop-shop for network administration.
It was noted that the Nigeria Gas Company (NGC), Dangote Fertiliser Limited and the Nigeria Gas Hub signed a framework agreement on the transportation of gas.
Mr Sheyin Omotola signed for the NGC, while Mr Mansur Ahmed signed for Dangote Fertiliser and Mr David Ige signed for the Gas Hub ltd.
Mr Ahmed of Dangote fertiliser limited said the development had shown Nigeria’s seriousness on gas matters, adding that establishing rules for utilisation, selling and transportation of gas was crucial.
He commended the effort of the government in ensuring that the code was in place and urged all stakeholders to key in for effective gas development in the country.