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Home Upstream FG Inaugurates Gas Transportation Network Code to Boost Gas Penetration

FG Inaugurates Gas Transportation Network Code to Boost Gas Penetration

The Sate-run Nigerian National Petroleum Corporation (NNPC) has restated its commitment to working with relevant partners and stakeholders in the Oil and Gas Sector to boost delivery of gas to the domestic market.

The Group Managing Director of NNPC, Mallam Mele Kyari, made the commitment Monday at the launch of the Nigerian Gas Transportation Network Code (NGTNC) which is designed to enhance the use of gas as a catalyst for national economic development.

In a goodwill message at the event, the NNPC GMD said the corporation was at the centre of gas delivery to the domestic market, stressing that it was involved in all the available gas delivery infrastructure in the country either directly or indirectly through joint venture partnership.

He said the inauguration of the Network Code was an opportunity to enhance gas delivery and utilization in furtherance of the Federal Government’s objective of transforming gas into a key component of the nation’s energy mix and revenue sources.

“We will continue to give our support to this process to ensure that the full delivery of this process is achieved. We commit to working closely with the DPR to ensure that the target of the government is attained. This opportunity has provided the right framework for the transportation of gas from the source to the end user in order to get value. We are happy to have this framework on ground and we are ready to collaborate with all our partners, the gas off-takers, gas producers, transportation companies, shippers, and all those involved in the gas value chain,” Mallam Kyari enthused.

Speaking on the significance of the Nigerian Gas Transportation Network Code (NGTNC), the Minister of State for Petroleum Resources, Chief Timipre Sylva, said it would help to grow gas infrastructure, expand gas utilization, curb gas flaring, and provide codes to standardize the gas value chain in line with global best practices.

The Minister said the NGTNC was part of the key reforms instituted by the President Muhammadu Buhari Administration to expand domestic gas-to-power, gas-to-Industry, gas-to-manufacturing and mitigate the challenge associated with gas flaring in the country.

He noted that the gas codes would go a long way in deepening economic development, improve gas supply, boost Liquefied Petroleum Gas supply, and attract more investment opportunities in the nation’s gas value chain.

Chief Sylva commended NNPC and its gas subsidiary, the Nigerian Gas Company (NGC), for partnering with the Department of Petroleum Resources (DPR) to meet the six-month target to bring the Network Code to life.

Earlier in his welcome remarks, the Director of DPR, Engr. Saraki Auwalu, noted that the Department has emplaced the network code platform and would continue to work with all Industry players for the success of the NGTNC.

The highpoint of the ceremony was the unveiling of the Network Code Electronic Licensing and Administrative System (NCELAS) portal and the supervision of the signing of framework agreements between NGC, Gas Hub, and Dangote Fertilizer Limited by the Minister of State for Petroleum Resources.

The Nigerian Gas Company will serve as the transporter while Gas Hub and Dangote Fertilizer Limited will serve as the shippers, with the Gas Aggregation Company of Nigeria Limited (GACN) in the role of agent as provided by the framework.

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