The Department of Petroleum Resources (DPR), has disclosed that plans are underway for investors to stake about $500 million for the development of the country’s gas network infrastructure under its Nigeria Gas Transportation Network Code (NGTNC).
Director of the Department, Sariki Auwalu, who disclosed this while reviewing implementation of the Nigerian gas transportation network code (NGTNC), which was launched last year, said the investors targets are looking at investing in the domestic gas value chain.
Auwalu said that strict implementation of the NGTNC, has helped to grow Nigeria’s Gas market coverage with a pricing regulations now in place.
During the period of review the DPR has licensed twelve shippers while three applications are under processing.
The DPR boss said it has licensed one transporter and three agent licensees that have so far increased the shipping industry’s capacity.
According to him, the Code has helped to upgrade gas transmission and distribution which is now conducted with global best practices.
Sarki said Nigeria now produces about 8 billion standard cubic feet of gas daily, exporting 3.5 billion standard cubic feet of gas and domestic utilisation now standing at 2,8 billion standard cubic feet of gas daily.
The Director also disclosed that gas flaring put has come down to 8 per cent which he said was a significant milestone.
He said moving forward, the DPR will intensify collaboration with relevant partners and stakeholders in the oil and gas sector to boost delivery of gas to the domestic market.
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The NGTNC was announced in February, but the existing users of the gas network got six months to migrate from existing Gas Transportation Agreements to the network code.
The code is a contractual framework between the gas transportation network operator and gas shippers that specifies the terms and guidelines for operation and use of the gas network.
It aims to provide open and competitive access to gas transportation infrastructure and would help to grow gas infrastructure, expand gas utilisation, curb flaring and provide codes to standardise gas value chain in line with global best practices.
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.
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