Fed Govt unveils revised Nigerian Gas Transportation Network Code

Initiative reduce gas imbalances by 30% In a strategic move to unlock the nation’s vast natural gas reserves and drive industrial growth, President Bola Tinubu yesterday veiled the revised Nigerian Gas Transportation Network Code (NGTNC). The NGTNC is a set of rules that govern the activities of participants in open access gas transportation. NGTNC revision II incorporated 28 amendments including 4 critical changes on Daily Reserved Pipeline Capacity Variation; Communication Protocol; Measurement Loss Factor, and Balancing Neutrality Charges. These crucial additions provide more flexibility to commercial agreements, promote coordinated efforts amongst stakeholders in the wake of Network disruption, standardise measurement for tighter revenue accruals, and support transparent transactions in system trade. Represented at the unveiling ceremony which held at the OTL Africa Downstream Energy Week that began yesterday in Lagos by the Permanent Secretary, Ministry of Petroleum Resources, Mrs. Patience Oyekunle, the President noted that the updated code builds upon the foundational framework first launched in 2020 and initially revised in 2024. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Authority Chief Executive (ACE), Mallam Rabiu Umar, said the second reviewed edition of NGTNC was designed to establish standardised, non-discriminatory rules for gas transportation across domestic pipelines. “This second revision marks a crucial milestone in building a transparent and efficient national gas market,” he said. According to Umar, the impact of the Network Code is already delivering measurable results across Nigeria’s energy sector, noting that since the implementation of Revision One, more shippers have joined the pipeline network, leading to a notable 30 per cent reduction in gas imbalances across the Western network. He said the Revision Two would consolidate these gains by refining operational and commercial guidelines for pipeline access, capacity allocation, and balancing. “It’s secures supply, brings stable, fair prices and less exposure to imports. Affordable energy lets industry grow and create jobs. It improves household welfare, and together, these create shared prosperity, investment, regional trade, and revenue also with development,” Umar stated.