DPR Director inaugurates Gas network Code Operationalization Team

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By Ikenna Omeje

 

The Director, Department of Petroleum Resources (DPR), Engr. Sarki Auwalu has inaugurated the network code operationalization team for the full implementation of the Nigeria Gas Transportation Network Code (NGTNC).

NGTNC which was launched by the Minister of State for Petroleum Resources, Chief Timipreye Sylva in February, at the Nigeria International Petroleum Summit (NIPS), has a six-month mandate to go live.

Auwalu, in his address at the virtual Inauguration Ceremony, stated that the major objective of the industry wide and highly proficient team was to provide the needed impetus for the full operations of the network code.

He reiterated that basic regulatory instruments for the operationalization of the network code like license Regime and Administrative system will be expedited by DPR before the go-live Ministerial mandate. The operational readiness of the gas transmission system as well as migration of extant agreements into the network code by the Nigerian Gas Company (NGC) will also be concluded to align with the go-live date.

Engr. Sarki further stated that the constitution of the teams of experts was a product of extensive consultation and he was confident that they will perform beyond expectation to help in the accelerated development and maturation of the Nigerian domestic gas sector.

The terms of reference for team 1, NC Operationalization Technical Working Team (NCO-TWT), led by Ayuba Steve, includes establishing System readiness for full operationalization of NGTNC; articulating the technical modalities for the successful migration of existing Gas Transport Agreements (GTAs) to network code; developing a framework for providing effective stakeholder support for all technical and regulatory issues for effective operationalization of network code; developing a framework for effective monitoring of the performance of network code and impact on the domestic gas market segment; developing a periodic network code reporting template for submission to the network code steering committee; and reviewing domestic gas market impact of NGTNC post full operationalization of the code.

The terms of reference for team 2, NC Operationalization Commercial/Legal Working team (NCO-CLWT), which is led by Gberindyer Terkula, include articulation of the legal modalities and identifying/resolving any legal encumbrance for the successful migration of all existing Gas Transportation Agreements (GTA’s) to NC; reviewing the tariff methodology and values for all envisaged payments/charges on the code;  analyse and make recommendation on issue of payment in dollar or naira for the network tariffs and charges.

The terms of reference for team 3, NC Operationalization Steering/Governance Committee (NCO-SGC), which is chaired by DPR Director, include to direct the activities required for full operationalization of the NGTNC; administer governance oversight of the NGTNC technical, Commercial and Legal working committees; interface with Honourable Minister of State Petroleum Resources on NC and provide strategic market update on impact/performance of NC.

Auwalu appreciated the leadership and members of the NNPC, GACN, NGA, OPTS and DPR gas team for their commitment towards the successful operationalization of the network code.

 

 

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