The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has launched Revision II of the Nigerian Gas Transportation Network Code (NGTNC) to expand access to gas transportation infrastructure for power plants, fertiliser producers and other industrial users.
The Authority Chief Executive, Rabiu Umar, announced the launch on Monday at the opening of the 20th Oil Trading and Logistics (OTL) Africa Downstream Energy Week in Lagos, following the signing of the revised code with key industry partners.
Umar said the revision was designed to deepen domestic gas utilisation and ensure open and fair access to pipeline infrastructure, providing clearer rules for producers, shippers, transporters and buyers.
“The Network Code basically is the rulebook for gas transportation. As we know, there’s one pipeline that different producers put their gas into. And for there to be equity, there needs to be a code, or if you like, rules of engagement on how you put your gas inside, how the gas is measured, and how you nominate gas.
“The pipelines deliver their full value only when access to them is open and fair. It is therefore a pleasure to announce, as you have witnessed, that the Authority has officially launched the revision 2 of the Nigerian Gas Transportation Network Code,” he said.
He said the revision built on gains recorded under the earlier framework, which has encouraged more shippers to use the network and improved the management of gas flows.
“Since revision 1, more shippers have come onto the network, and the imbalance on the Western network has fallen by about 30 per cent. Revision II builds on these gains, and I invite every shipper, transporter and investor to make full use of that,” Umar said.
The revised code also introduces provisions to address gas losses arising from incorrect injection into pipelines, including clearer rules on shrinkage factors.
Umar said the framework would support improved utilisation of existing infrastructure as Nigeria works to increase gas supply to domestic industries.
He disclosed that the Oben-Obiafu-Obrikom (OB3) pipeline and the Escravos-Lagos Pipeline System midline compressor were nearing completion, while the Ajaokuta-Kaduna-Kano gas pipeline was more than 80 per cent complete.
According to him, the projects are expected to increase the country’s gas transportation capacity from 2.2 billion cubic feet per day to 4.4 billion cubic feet per day when completed, helping connect gas supplies in the south to demand centres in the north.
Umar said about three-fifths of the gas processed in September went to power plants, factories, Nigeria LNG and the West African Gas Pipeline, while demand for cooking gas continued to exceed supply.
He said the revised code also provides initial rules for regional gas pipelines, including the West African Gas Pipeline and proposed Trans-Saharan and Trans-African pipelines, with harmonised standards needed to facilitate cross-border gas movement.
Nigeria has about 215 trillion cubic feet of proven gas reserves, while the country requires substantial new investment in processing and transportation infrastructure to unlock its potential, he said.