Oil & Gas

FG inaugurates Gas Network Code to deepen gas market



The Federal Government has inaugurated the Nigeria Gas Transportation Network Code to  deepen the growth of gas market in the country.

The Minister of State for Petroleum Resources, Chief Timipre Slyva, 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.

Sylva said that other 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 programme 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 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 .

Sylvia, said the DPR 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. [email protected] go.NG and www.dpr.gov.ng. and urged all stakeholders to effectively make use of the code to enhance their businesses.

In his remarks, the Group Managing to Director of the Nigerian National Petroleum Corporation (NNPC), Malam Mele Kyar 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.

In his remarks, Sarki Auwalu,  the Director Department of Petroleum Resources (DPR), said that the gas code will address gas flaring, grow infrastructure and expand 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 governs gas transporation system, secure gas transmission and ensure cost effective tariff for the 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.

News Agency of Nigeria reports 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.

Ahmed of Dangote fertiliser limited said the development had shown Nigeria’s seriousness on gas matters, adding that establishing rules for utilistation, sellimg and transportational 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.

Also, he said that the code was a major milestone to drive the gas sector to the next level.

He said that establishment of the code was a step in the right direction, adding that it would be impossible to bring innovations without guideline.

“We will do our best and stand with DPR to ensure that things are done properly for the growth of the sector, ” he said.

Speaking on behalf of gas sector participants, Mr Olalekan Ogunleye commended the federal government for achieving the launch of the code in spite of the challenges possed by COVID-19.

He assured that stakeholders in the industry would support the effort of the DPR, NGC and others as managers of major suppliers in the country to ensure effective implementation of the code.

“We will be proud to be the first network agent to bring excellence to the implementation of the network code and ensure transparency in the system,” he said.

Edited By: Benson Iziama/Felix Ajide (NAN)




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