The federal government yesterday announced the commencement of the Nigerian Gas Transportation Network Code (NGTNC), the code is aimed at providing open and competitive access to gas transportation Infrastructure and development of the Nigerian Gas Sector.
The minister of State for Petroleum Resources, Chief Tlmipre Sylva who launched the code at the ongoing Nigeria International Petroleum Summit (NIPS 2029), stated that the Code will stimulate the domestic Gas market, drive gas-based industrialisation and aid the realisation of the government’s aspiration to move 100 million Nigerians out of poverty.
Declaring the commencement of the code, the minister said, “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.
“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.
“All new and intending users shall make use of the Network based on the terms and conditions provided In the Network Code.
“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.”
He added that, “These directives will be transmitted to all stakeholders by the director of Petroleum Resources for immediate compliance.”
Speaking of the NIPS, the minister said, the platform is a Pan-African event designed as a meeting point for the oil and gas industry to introduce and harness new technologies and ideas that will lead to development of new strategies that would attract and enhance inflow of foreign investments while improving success rates of indigenous business engagements.
Declaring the NIPS 2020 open, President Mohammadu Buhari, represented by the secretary to the federal government, Boss Mustapha, urged investors to take advantage of the government’s readiness to create a conducive environment to invest in the sector.
“Nigeria, as an oil producing nation, remains ready and accessible for legitimate investment from all interested countries, individuals and partners.
“Let me assure foreign delegates that their investments are well secured in Nigeria and a high return on investment is always guaranteed. It cannot get better anywhere.
“Towards achieving the realisation of a safe and secure investment environment, this administration has taken steps to reposition the oil and gas sector in the following areas: “Improved the business environment and drive investments in the upstream, midstream and downstream.
“Reviewed and gazetted policies and regulations to enhance operations in the sector.
“Enhance accelerated gas revolution by developing infrastructure for multi-domestic utilisation of LPG and CNG; Commenced the process of commercialising gas flare and increasing gas to power; fourthly, improved Niger Delta security through capacity building and economic empowerment.
“We have also enforced transparency and efficiency in the sector by building capacity, enabling the use of IT and automation and entrenching performance management; Increase refineries production capacity, improved stakeholders management, international relations and bi-lateral coordination
In his welcome address, the group managing director (GMD) of the Nigerian National Petroleum Corporation (NNPC), Mallam Mele Kyari, said the corporation is making efforts to expand its operational footprints across the globe.
He stated that though the primary focus of the corporation was to ensure energy security for Nigeria, it had capacity to meet the energy needs of the entire West African sub-region.
He added that the NNPC was working with its technical partners to restore its three refineries to be able to operate at optimal levels.
He stated that already the Phase 1 of the rehabilitation work on the Port Harcourt Refinery had begun with Phase 2 work in the offing.
“We will continue to support the Dangote refinery and the other modular refinery projects in the country to guarantee energy security for Africa. Nigeria welcomes foreign investors to invest in the Oil and Gas Industry. 2020 is year of gas. Nigeria will deepen domestic gas use and monetisation of our huge gas resources,” Mallam Kyari said.
Senate President, Dr Ahmed Lawan, who was represented by the chairman Senate Committee, Upstream, Senator Bassey Akpan, reassured players in the nation’s Oil and Gas Industry of the commitment of the 9th National Assembly to enact legislations that would promote the growth of the nation’s petroleum sector.
The summit with theme: “Widening the Integration Circle: Technology, Knowledge, Sustainability, Partnership”, attracted goodwill messages from the African Petroleum Producers Organisation (APPO), Oil Producers Trade Section (OPTS) of the Lagos Chamber of Commerce and other local and international players in the Oil and Gas Industry.