Energy Briefs
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THE Department of Petroleum Resources, DPR, is now implementing the Nigeria Gas Transportation Network Code, NGTNC. The code NGTNC is a contractual framework between transporter and network users that provides open competitive access to existing and future gas transportation infrastructure.
Under the code, every gas meant for domestic use either for power, petrochemical or industrial, will have a single entry and exit point to cut short the sharp practices prevalent in the current supply and distribution system. Mordecai Danteni Baba Ladan, director, DPR, who spoke at the just-concluded Society of Petroleum Engineers, SPE, 2015 Conference and Exhibition in Lagos, said stakeholders in the sector had earlier met in Abuja to discuss on the ways to ensure smooth implementation of the code.
Ladan said part of the implementation exercise of the NGTNC was the training of 20 personnel outside the country under the guidance of foreign partners. Stating that these steps would help eradicate lots of bottle neck issues in the system, he added that gas flaring in the country might end in 2020 but that adequate funding was required to achieve it.
This is coming as the Nigeria Gas Company, NGC, hinted that gas supply to power plants would increase to 800 million standard cubic feet by the end of 2016. The increased supply of gas to power plants according to Dafe Sejebor, managing director, NGC, will be done on a willing-buyer-willing-seller basis.
The NGC has also urged the government to implement the $2.50 for the price of gas which would help gas supplier break even in the market. The successes of increased gas supply to power plants, according to Sejebor, also depended on adequate regulatory framework on the commercial side of the sector. “Regulation has a major role to play for effective gas supply. Regulation should be looked at more on a commercial basis and we don’t want to forget that time is of essence. Government should implement regulations on time,” he said.
— Aug 24, 2015 @ 01:00 GMT
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