Implementation of gas transportation network code ongoing – DPR

05 July 2016, Abuja – The Department of Petroleum Resources (DPR) has disclosed that the Nigerian Gas Transportation Network Code (NGTNC), an enabler that will entrench transparency, efficiency, fairness and non-discriminatory access to gas transportation networks, was already being implemented in the country.

Oandos-128-Km-gas-pipeline

Gas pipeline

DPR said the implementation of the code would provide for investors in gas, the confidence to invest heavily in the sector and enable Nigeria consolidate on the multiplier effect of gas on the economy.

The Director of DPR, Mr. Mordecai Ladan disclosed this at the recent Business Forum in Lagos, where he delivered a goodwill message on the status of the implementation of the NGTNC.
The DPR had in 2015 said the lack of funding; infrastructure; transitioning of legacy agreements and commercial framework were major obstacles to the implementation of the NGTNC.

It reportedly stated that the country’s gas industry was interested in a sector where there are multiple pipelines as against one owner; no inherent natural monopoly; open access; hub or traders; separation of commodity and infrastructure; alternative producers; a free market driven by willing buyer/willing seller; and a guided network code.

The DPR at that time also said the absence of these features were a threat to its implementation of the NGTNC.

But Ladan in his goodwill message which THISDAY obtained in Abuja said the government in recognition of the potential of natural gas, has put in place various interventions to stimulate gas utilisation and monetisation.

He told the audience that reforms were initiated to re-position the gas sector and deliver on government’s key aspirations.

“These aspirations include developing a viable domestic market; creating new industry out of the old oil industry; capturing economic value; generating as much revenue from gas as from oil; and ending gas flaring by the year 2020,” said Ladan.

According to him: “In recent years, government has begun the implementation of a nationwide gas infrastructure blueprint aimed at connecting all key supply sources to markets across the nation.
“Also, the Nigerian Gas Transportation Network Code, an enabler that will entrench transparency, efficiency, fairness and non-discriminatory access to gas transportation networks is being implemented.”

He noted that these interventions and other ongoing government reforms in the industry had high prospects that could boost investors’ confidence in the country’s gas sector.

Ladan explained that this could provide a radical structure that will enable Nigeria consolidate on the multiplier effect of gas on her economy, strengthen her standing in the high value export and domestic markets as well as manage her gas resources for national energy security.

 

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