…Code to standardize gas value-chain
…domestic consumption still low at 609.3 MMcf
As Nigeria sets code to standardize its gas value-chain, the national oil company, NNPC says it is committed to working with relevant partners and stakeholders in the oil and gas sector to boost delivery of gas to the domestic market. Known as the Nigerian Gas Transportation Network Code (NGTNC), it is designed to enhance the use of gas as a catalyst for national economic development.
Data from worldometers.info say Nigeria, with proven gas reserves of 187 trillion cubic feet (Tcf), ranking 9th in the world, and accounting for about 3 percent of world’s total natural gas reserves of 6,923 Tcf, has gas reserves equivalent to 306.3 times its annual consumption of 609,290 million cubic feet (MMcf).
The NNPC group managing director, Mele Kyari made the commitment at the launch of the NGTNC by the federal government, saying the corporation was at the centre of gas delivery to the domestic market.
He stressed that the national oil company was involved in all available gas delivery infrastructure in the country directly or indirectly through joint venture partnerships.
Kyari said the inauguration of the gas transportation network code was an opportunity to enhance gas delivery and utilization in furtherance of the federal government’s objective of transforming gas into a key component of the nation’s energy mix and revenue sources.
“We will continue to give our support to this process to ensure that the full delivery of this process is achieved. We commit to working closely with the DPR to ensure that the target of the government is attained. This opportunity has provided the right framework for the transportation of gas from the source to the end-user, in order to get value. We are happy to have this framework on ground; and we are ready to collaborate with all our partners, the gas off-takers, gas producers, transportation companies, shippers, and all those involved in the gas value chain,” Kyari said.
At its current gas infrastructure, Nigeria’s gas consumption ranks 38th in the world, accounting for about 0.5 percent of the world’s total consumption of 132,290,211 MMcf.
Timipre Sylva, minister of state for petroleum resources, says the significance of the Nigerian Gas Transportation Network Code would help to grow gas infrastructure, expand gas utilization, curb gas flaring, and provide codes to standardize the gas value chain in line with global best practices.
He says the NGTNC was part of the key reforms instituted by the President Muhammadu Buhari administration to expand domestic gas-to-power, gas-to-industry, gas-to-manufacturing; and mitigate the challenge associated with gas flaring in the country.
Sylva says the gas codes would go a long way in deepening economic development, improve gas supply, boost liquefied petroleum gas (LPG) supply, and attract more investment opportunities in the nation’s gas value chain. He commended the NNPC and its gas subsidiary, the Nigerian Gas Company (NGC), for partnering with the Department of Petroleum Resources (DPR) to meet the six-month target to bring the gas network code to life.
Saraki Auwalu, director of DPR notes that the department has emplaced the network code platform, and would continue to work with all industry players for success of the NGTNC.
There was also the unveiling of the Network Code Electronic Licensing and Administrative System (NCELAS) portal and the supervision of the signing of framework agreements between NGC, Gas Hub, and Dangote Fertilizer by the minister of state for petroleum resources.
Under the arrangement provided by the NGTNC framework, the Nigerian Gas Company will serve as the transporter while Gas Hub and Dangote Fertilizer will serve as the shippers with the Gas Aggregation Company of Nigeria (GACN) in the role of agent.