Nigeria's national gas transportation network code now live

Nigeria recently activated the National Gas Transportation Network Code, a significant milestone in the country's efforts to unlock its vast gas potential. The network code, which was launched in February, aims to provide guidelines for agreements between buyers and sellers in the gas sector. Justice Derefaka, Program Manager for the Nigeria Gas Flare Commercialisation Programme, highlighted the importance of this development in a recent interview on CNBC Africa. The implementation of the network code is expected to revolutionize Nigeria's gas industry and attract investors looking to capitalize on the country's abundant natural gas resources. The National Gas Policy, approved by the Nigerian government in 2017, set the stage for the transition from an oil-based economy to a gas-based one. With the declaration of this year as the 'Year of Gas' by the Minister of State, there is a renewed focus on developing the country's gas infrastructure and enhancing the sanctity of gas contracts. The network code is a key component of this strategy, as it will facilitate the transportation of gas from production sites to end users across the country. One of the main benefits of the network code is its enablement of virtual pipelines, allowing for the movement of gas even in areas with limited pipeline infrastructure. This innovative approach aligns with the objectives of the Nigerian Gas Flare Commercialisation Programme, which aims to monetize gas flaring sites by converting flared gas into marketable products. By leveraging existing infrastructure and following the guidelines outlined in the network code, gas producers can efficiently transport their products to consumers without the need for extensive pipeline construction. In his interview, Derefaka emphasized the importance of transparency and metering in the gas sector, highlighting how the network code will streamline operations and ensure fair pricing for all parties involved. By providing a clear framework for gas transportation agreements, the network code is expected to boost investor confidence and attract both local and international players to Nigeria's gas market. With plans to access open doors to investors, the country aims to position itself as a hub for gas production and distribution in the region. Regarding the licensing requirements to operate within the network code, Derefaka clarified that additional licenses would only be necessary for companies looking to build new pipelines. Existing players in the sector can access the network code by complying with the necessary documentation and procedures outlined by regulatory agencies. This streamlined process is designed to encourage more participation in the gas industry and enable seamless transactions between gas producers and consumers. Overall, the activation of the National Gas Transportation Network Code marks a significant step towards transforming Nigeria into a gas hub in Africa. By leveraging its abundant natural gas resources and implementing innovative solutions like virtual pipelines, the country is poised to revolutionize its gas sector and attract investment opportunities. The network code not only simplifies gas transportation agreements but also sets the stage for a more efficient and competitive gas market in Nigeria.