Sylva reveals Nigeria’s Gas Transportation Network Code.

Minister of State Petroleum

At the ongoing 3rd Nigeria International Petroleum Summit (NIPS) in Abuja, the Honourable Minister of State for Petroleum Resources, Chief Timipre Sylva has revealed the Nigeria’s Gas Transportation Code.

The Gas Transportation Code as given by Sylva is a contractual framework between the gas transportation network operator and gas shippers that specifies the terms and guidelines for operation and use of Gas Network.

Chief Sylva further disclosed that the Nigeria’s  Gas Transportation Code has its roots in the Nigerian Gas Master Plan (NGMP), the National Domestic Gas Supply and Pricing Regulation, 2008 (Section 2 (f & g) and the National Gas Policy, 2017 (Section 4.3.3).  The Honourable Minister said the Gas Transportation Code is meant to guarantee open access to the Network of participating in the businesses involved in the proven 200.79 Trillion Cubic Feet (TFT) Nigeria’s gas reserves.

Chief Timipre Sylva gave the effective date of the Nigeria’s Gas Transportation Code as the 10th of February, 2020 and that it shall apply immediately to all gas transportation arrangements between gas transporter and gas shipper as defined in the Code.

The Honourable Minister also gave directives for all existing users of the transportation network to within Six months the 10th of February, 2020 migrate from existing Gas Transportation Agreements to the Network Code by executing the necessary Ancillary Agreements.

Chief Sylva in the same vein directed all new and intending users to make use of the Network based on the terms and conditions provided in the Network Code stating that the Code remains the uniform protocol for users of the Gas Transportation Network.  According to Sylva, the Code can only be modified in accordance with relevant provisions in the Code itself while the Ancillary Agreements could be negotiated by the relevant parties.

Whilst launching the Nigeria’s Gas Transportation Code at the NIPS Summit, Chief Timipre Sylva listed the benefits derivable from the Code’s implementation as follows:  It will provide open and competitive access to gas transportation infrastructure and development of the gas sector.  He also said it will stimulate the domestic gas market, drive gas-based industrialization and the realization of the Government’s aspiration to lift 100 Million Nigerians out of poverty.

Report by Olujimi Oyetomi,
Head of Press,
Ministry of Petroleum Resources.