$500 Million to be capitalized by credible investors into the Midstream Sector of Nigeria‘s Oil Industry, the Department of Petroleum Resources published
By Abdul Rahman Bangura–
NEW AFRICA BUSINESS NEWS (NABN) Freetown, Sierra Leone- Sariki Auwalu, Director of DPR while evaluating the enactment of the Nigerian Gas Transportation Network Code (NGTNC), initiated in 2020, told the investors are contemplating interests in the domestic gas value chain.
Auwalu asserted, stringent enactment of the NGTNC has enabled to thrive Nigeria’s Gas market range with a pricing statutes now in place. During the period of review, the DPR has permitted twelve shippers while three applications under screening.
In upswing he noted the Agency has certified one transporter and three agent licenses and that has so far heightened shipping industry capacity. Likewise, the Code has assisted to boost gas transmission and distribution which is now administered in global best practice.
He announced that, Nigeria generates about 8 billion standard cubic feet of gas daily, exporting 3.5 billion standard cubic feet of gas and domestic utilization providing at 2.8 billion standard cubic feet of gas daily. Auwalu mumbled, the DP shall strengthen alliance with pertinent members and stakeholders in the Oil and Gas Sector in a bid to boost delivery of gas to the domestic market.
Oriental News Nigeria, reports that then 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. The code aims to provide open and competitive access to gas transportation infrastructure.
Auwalu, said the framework would help to grow gas infrastructure, expand gas utilization, curb gas flaring, and provide codes to regularize the gas value chain in line with accepted best strategies. The NGTNC was part of the key reforms formed by President Muhammadu Buhari Administration in injunction to broaden domestic gas-to power, gas-to-industry, gas-to-manufacturing and mitigate the challenge associated with gas flaring in the nation.
The gas codes would go a long way in heightening financial growth, enhance gas supply, upgrade liquefied petroleum gas supply, and entice more investment chances in the Nigeria’s gas value chain.
For New Africa Business News (NABN) Abdul Rahman Bangura Reports, Africa Correspondent
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