Federal Government Establishes National Gas Transportation

According to Thisday, Nigeria has recorded a significant milestone in the development of its natural gas for
both domestic use and exports, as the first phase of the National Gas Transportation Network Code that will
guide access to gas transmission network had been completed.

The code was completed and delivered to the Nigerian National Petroleum Corporation (NNPC) by Osprey
Investments Group Limited, a British consultancy company and its technical partner, TPA Solutions.
The idea to establish the national gas transportation network code was conceived by the Federal
Government to regulate and control the operation of gas pipelines. Government had reasoned that
successful transportation of gas for power generation and other domestic use required a set of rules setting
forth the quantity and quality of gas, which international oil companies would input into the pipeline as well
the quantity and quality of gas to be utilised by users, including power plants.

According to Osprey, the “Code is intended to be a contractual framework between transporter (or network
operator) and network users (known as shippers) that provides open competitive access to existing and
future gas transportation infrastructure.

In a presentation to the NNPC in Abuja last week, Director of TPA Solutions, Mr. Mark Sutton said the “code
will initially cover only the Escravos-Lagos Pipeline System (ELPS) network but should be capable of
incorporating other transportation infrastructure, not necessarily all owned by NNPC, in due course”.
“The Gas Transportation Network Code is absolutely essential to the successful operation of Nigeria’s
domestic gas transportation pipeline network. NNPC, and its gas transportation arm, the Nigerian Gas
Company (NGC), is further developing the Gas Transportation Network Code, with its consultants, Osprey
Investments and the various gas industry stakeholders in Nigeria, including suppliers, shippers, buyers and
other interested parties”, he said.

Osprey Investments Group Limited, a British consultancy company based in Abuja, and its predecessor
companies had been involved in project management, monitoring and evaluation of major oil and gas
projects in Nigeria. TPA Solutions was responsible for developing the Gas Network Code for the United
The Roadmap for Power Sector Reform provides that achieving the target of 40,000 megawatts of power by
2020 will require investments (in fuel to power, generation, transmission, and distribution) of $10 billion for
each of the next 10 years.
Analysts said the completion of the Gas Network Code was a significant milestone in the development of
Nigeria’s domestic and international gas industry.
They opined that the establishment of the Gas Network Code could substantially improve the image of
Nigeria’s gas market to the international community, thereby leading to an increase in foreign investment in

the Nigerian gas market.

Petroleum Minister, Mrs. Diezani Alison-Madueke, had in May hinted that the Federal Government had
concluded arrangements to introduce gas network code to guide access to gas transmission networks.
The minister who spoke at the signing ceremony of gas supply agreement between the Power Holding
Company of Nigeria (PHCN) on one hand, and NNPC, Total, Chevron, Agip, and Shell Petroleum on the
other, said the first set of stakeholders made up of 25 persons drawn from the International Oil Companies
(IOCs) and PHCN would undergo a week training in London on the operations of the Network Code. She
said the training would be extended to other players training in the sector.

Author: nmmin

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