The Department of Petroleum Resources (DPR) has stated that the Nigerian Gas Transportation Network Code (NGTNC) introduced last year to guide open access transportation of natural gas, has already attracted investment proposals of over $USD500 million.
Director, DPR, Sarki Auwalu, said so far, the Department has received investment proposals for power generation, ammonia for fertilizer, domestic LNG, methanol, virtual gas pipeline systems, new gas hubs and the establishment of Nigeria gas trading exchange.
Through its Nigerian Gas Flare Commercialisation Programme (NGFCP), the DPR noted that plans are ongoing to reduce gas flaring from the current single digits of eight per cent to five per cent in the country.
Auwalu stated this at an interactive session on the first year of operationalising the network code in Nigeria.
In his words, “Investors across the various gas value chains are telling us that they need DPR support, they need us to create that enabling environment for opportunities. We are looking at an additional $500 million in just one year since we introduced the code.
“The request is over 500 mmscf per day and this is just for one year; you can imagine how much investment we would attract if we continue with this.”
He noted that with the gas code, investors’ confidence have been boosted as investors are coming to DPR to create more networks for distribution of gas in the country.
He noted that the code ensures non-discriminatory access to pipeline systems, guarantees secure, available, reliable and safe gas transmission systems and ensures cost reflective tariffs for pipeline services.
He also added that the code supports the development of matured gas markets and provides a mechanism for effective handling of contractual disputes.
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