Energy Briefs
–
THE Department of Petroleum Resources, DPR, is already implementing the Nigerian Gas Transportation Network Code, NGTNC, an enabler that will entrench transparency, efficiency, fairness and non-discriminatory access to gas transportation networks in the country.
The implementation of the code will provide investors in gas, the confidence to invest heavily in the sector and enable Nigeria consolidate on the multiplier effect of gas on the economy. Mordecai Ladan, director, DPR, disclosed this at the recent Business Forum in Lagos, where he delivered a goodwill message on the status of the implementation of the NGTNC.
The DPR had in 2015 said the lack of funding; infrastructure; transitioning of legacy agreements and commercial framework was major obstacles to the implementation of the NGTNC. It stated that the country’s gas industry was interested in a sector where there are multiple pipelines owners instead of a monopoly; open access; hub or traders; separation of commodity and infrastructure; alternative producers; a free market driven by willing buyer/willing seller; and a guided network code.
The DPR had also said the absence of these features were a threat to its implementation of the NGTNC. But Ladan in Abuja said the government in recognition of the potential of natural gas, has put in place various interventions to stimulate gas utilisation and monetisation.
He told the audience that reforms were initiated to re-position the gas sector and deliver on government’s key aspirations. “These aspirations include developing a viable domestic market; creating new industry out of the old oil industry; capturing economic value; generating as much revenue from gas as from oil; and ending gas flaring by the year 2020.
He noted that these interventions and other ongoing government reforms in the industry had high prospects that could boost investors’ confidence in the country’s gas sector. Ladan explained that this could provide a radical structure that will enable Nigeria consolidate on the multiplier effect of gas on her economy, strengthen her standing in the high value export and domestic markets as well as manage her gas resources for national energy security.
— Jul 18, 2016 @ 01:00 GMT
|
Tags:
