Nigerian Gas Sector Watch

Nigerian Gas Sector Watch

This newsletter provides information on developments in the Nigerian Gas Sector during the first quarter of 2020.

Wole Obayomi

Partner & Head, Tax, Regulatory & People Services

KPMG in Nigeria


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Gas facilities

Launch of Nigerian Gas Transportation Network Code

The Ministry of Petroleum Resources, through the Department of Petroleum Resources (DPR) recently launched the Nigerian Gas Transportation Network Code (NGTNC or “the Network Code”) aimed at opening access, and enhance availability and affordability of domestic gas for Nigerians. The Network Code, which became effective on 10 February 2020, is a set of rules and contractual framework established by the government to be observed by gas producers and transporters. Its provisions allow a six-month window for legacy agreements to migrate into the Network Code, while new and intending agreements are to align with the new Code.

The NGTNC is designed to govern the operations between the network operator(s) and users  of the gas transportation system (including all existing and future gas pipelines) in Nigeria. It will serve as an important negotiation component for gas business and transactions in the Nigerian domestic gas market. Some key objectives of the Network Code are to:

  • ensure fair and non-discriminatory access to the
    gas network;
  • promote gas trading; and
  • deepen domestic gas penetration in-country.

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