The National Gas Transportation Network Code launched in February, by Timipre Sylva, minister of state for Petroleum Resources will go live on August 10, 2020.
The Network Code will open a vista of opportunities for investors interested in the gas sub-sector of the oil and gas industry. As encapsulated in the National Gas Policy (2017), the networking code is critical to the government’s objective in firming up the country’s domestic gas obligation as well as promoting export.
It will ensure that the wrong quality gas does not go into the pipeline in addition to guaranteeing gas pipeline integrity, open access to a pipeline, and a common understanding of metering. The review of the Network Code licensing framework and development of all its ancillary agreements have been firmed.
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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. It is a major policy thrust of government to unlocking the potentials of gas as a resource and revenue earner for Nigeria
It is believed that the implementation of the code would provide for investors in gas, the confidence to invest heavily in the sector, and enable Nigeria to consolidate on the multiplier effect of gas on the economy.
Justice Derefaka, Technical Adviser, Gas Business & Policy Implementation, To the Honorable Minister of State, Petroleum Resources said he is the best gift of the year to the gas sector and indeed the international investor community even as the Honorable Minister of State, Petroleum Resources, H.E Chief Timipre Sylva has towards the end of last year declared this year 2020 as the ‘Year of Gas’.
“Once we go live on Monday, 10th August, The Network Code will time as a gas market liberalization enabler aimed at ensuring gas pipeline integrity, open access to a pipeline and common understanding on metering with a set of rules and protocols designed to govern the operations of gas network players in a way that impacts the gas market as part of efforts towards transparency and efficiency in the operation of pipelines in the country,” Derefaka said.
