NMDPRA Launches New Gas Network Code to Boost Supply

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), under the leadership of Chief Executive Mallam Rabiu Umar, launched Revision II of the Nigerian Gas Transportation Network Code (NGTNC) on a Monday during the 20th Oil Trading and Logistics (OTL) Africa Downstream Week in Lagos. This new code aims to expand gas supply access to power and fertilizer plants, as well as shippers and investors.

Umar stated that the code will facilitate open and fair access to gas transportation infrastructure, essential for equity among gas producers. The revision comes amid rising gas demand, with significant portions of gas processed in September allocated to power plants and factories.

Infrastructure developments, including the Oben-Obiafu-Obrikom pipeline and the Escravos-Lagos Pipeline System midline compressor, are nearing completion, which will double national gas transport capacity from 2.2 to 4.4 billion cubic feet per day. The new code also introduces clearer rules for shippers and buyers, addressing issues like shrinkage factor.