MINISTERIAL ADDRESS BY THE HONOURABLE MINISTER OF STATE FOR PETROLEUM RESOURCES, CHIEF TIMIPRE SYLVA, AT THE LAUNCH OF THE NIGERIAN GAS TRANSPORTATION NETWORK CODE (NGTNC)
Protocols
It is with great pleasure that l extend a warm welcome to everyone here present, and specially the Stakeholders, t0 the launch of the Nigerian Gas Transportation Network Code (NGTNC). It has been a very successful journey with a lot of collective commitment that enabled us
to attain this important milestone. Distinguished Ladies and Gentlemen,
I need not reiterate to this audience the immense opportunities that Nigeria’s Gas Resource affords with our Gas Reserves position at 200.79 Trillion Cubic Feet (TCF) as at 1st January 2019.
The drive to optimally explore and produce this resource is driving govemment’s aspirations for energy security, economic diversification, job creation and enhanced revenue generation.
Gas and its derivatives as envisaged in the National Gas Policy would surely catalyse our economic growth and the need for gas transportation infrastructure has, to a large extent, to be put in place for the sector to develop.
In light of the above, our policy directions are geared towards addressing the infrastructural challenge.
Accordingly, the Nigerian Gas Master Plan (NGMP), the National Domestic Gas Supply 8: Pricing Regulation, 2008 (Section 2 (f & 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 ls a contractual framework between the gas transportation network operator and gas shlppers 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.
Also, the Code will stimulate the domestic Gas market, drive gas-based industrialisation and the realisation of the
Govemment’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.
Distinguished Ladies and Gentlemen, the Gas Network Code is herebya launched as follows:
1. 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.
ii. 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 Agreements.
ill. All new and lntendlng users shall make use of the Network based on the terms and conditions provided In the Network Code.
lv. 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.
These Directives will be transmitted to all stakeholders by the Director of Petroleum Resources for immediate compliance.
Thank you.
