The Department of Petroleum Resources (DPR) has said that it received investment proposals of about $500 million from gas development investors for building gas pipelines and other facilities since the implementation of the Nigerian Gas Transportation Network Code (NGTCN) began a year ago.
This follows the confidence of investors in the domestic gas value chain across the country.
This disclosure was made by the DPR Director/Chief Executive Officer, Mr Sarki Auwalu, during an interactive session with the media to mark the first year of operationalising the network code in Nigeria on Tuesday in Lagos, according to NAN.
Auwalu, while reviewing the programme, noted that the oil and gas regulator had improved investors’ confidence in the evolving domestic gas market.
What the DPR Director/Chief Executive is saying
Auwalu said, “Confidence of investors across the domestic gas value chain has shown positive trend through specific requests for DPR’s support for gas supply to the tune of over 500 million standard cubic feet per day and for investments of over $500 million.
“The network code investment areas that the DPR has received proposals on include power generation, ammonia for fertiliser, methanol plant and domestic liquefied natural gas. Others are virtual pipeline systems, new gas hubs and the establishment of a Nigerian Gas Trading Exchange.”
He said that through the implementation of the network code, the DPR was able to improve the much-needed market alignment between critical demand points for gas and available supply opportunities.
According to him, the NGTNC has also improved domestic gas market linkage between downstream demand points and upstream gas supply opportunities.
He said the construction of gas pipelines across the country and the increased investment brought by the NGTCN would create job opportunities for Nigerians.
Auwalu said it had also increased the activities of investors like gas shippers, suppliers, agents on the network and had further promoted gas availability, accessibility, affordability and awareness.
He added that the network code had improved transparency and predictability in gas trading, thereby stimulating the growth of gas business and deepening the performance of the Nigerian gas value chain.
What you should know
It can be recalled that the NGTCN was inaugurated on August 10, 2020, by the Minister of State for Petroleum Resources, Chief Timipre Sylva, to boost the domestic gas market.
It is a specialised set of rules developed by the DPR to guide the implementation of a fair and non-discriminatory open access for gas transportation in Nigeria.
The code is a contractual framework between the gas transportation network operator and gas shippers that specifies the terms and guidelines for the operation and use of the gas network. The code aims to provide open and competitive access to gas transportation infrastructure.