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FG to launch new Network Code on gas transportation

FG to launch new Network Code on gas transportation

The Federal Government is set to launch the Nigerian Gas Transportation Network Code that will grant Open Access to third party use of gas pipelines on a non-discriminatory basis. The National Gas Transportation Network Code will be unveiled next Monday as part of the opening day of the 3rd edition of Nigeria International Petroleum Summit scheduled to hold in Abuja.

Daily Trust learnt that the Network Code is a set of rules that will guide the use of gas transportation system in Nigeria. It is a contractual framework between the network operator (transporter) and the users (shippers, buyers, suppliers) that will provide open and competitive access to gas transportation infrastructure. The Network Code intends to remove the barriers affecting investments in gas transport infrastructure. It will also ensure that the wrong quality gas does not go into the pipeline in addition to guaranteeing gas pipeline integrity, open access to pipeline and common understanding on metering.

“The review of the Network Code licensing framework and development of all its ancillary agreements have been firmed”, organisers of the NIPS said in a statement.
The code will also provide a uniform platform in terms of guidelines for agreements between buyers and sellers which will ensure transparency and eliminate existing bottlenecks.
So far in Nigeria there have been almost 590km of gas pipelines that have been completed and commissioned. They include: Oben-Geregu (196km), Escravos-Warri-Oben (110km), Emuren-Itoki (50km), Itoki-Olorunshogo (31km), Imo River-Alaoji (24km), Ukanafun-Calabar (128km) and Northern Option Pipeline (NOPL) 50km. Other strategic pipelines include East-West OB3 pipeline (127km), Escravos-Lagos Gas Pipeline System and the Trans Nigeria Gas Pipeline (1400km) whose technical evaluation has just been completed. A source familiar with the programme said the code had become necessary because most of the pipelines were monopolised by the Nigerian Gas Company (NGC), a subsidiary arm of the NNPC, and the international oil companies (IOCs).