*Targets 9 gas laboratories nationwide by H1 2027
*Authority, NNPC advance talks to pilot nationwide strategic gas reserve
Peter Uzoho
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA)! has expanded fuel provide entry to energy crops, fertiliser crops and shippers with the launch of Revision II of the Nigerian Gas Transportation Network Code (NGTNC).
Authority Chief Executive of NMDPRA, Mallam Rabiu Umar introduced the brand new code Monday on the opening of the twentieth Oil Trading and Logistics (OTL) Africa Downstream Week in Lagos after signing the doc with key companions.
The companions comprise energy technology crops, fertiliser crops, shippers and traders.
Umar mentioned the brand new code will deepen home fuel utilization and guarantee open, truthful entry to fuel transportation infrastructure.
“The Network Code principally is the rulebook for fuel transportation. As we all know, there’s one pipeline that totally different producers put their fuel into. And for there to be fairness, there wants to be a code, or if you happen to like, guidelines of engagement on how you set your fuel inside, how the fuel is measured, and the way you nominate fuel.
“The pipelines deliver their full value only when access to them is open and fair. It is therefore a pleasure to announce, as you have witnessed, that the Authority has launched officially the revision 2 of the Nigerian Gas Transportation Network Code,” he mentioned.
Speaking below the summit’s theme “Secure Energy, Shared Prosperity,” Umar mentioned the code revision comes as fuel demand rises, with about three-fifths of fuel processed in September deployed to energy crops, factories, NLNG and the West African Gas Pipeline (WAGP) whereas demand for cooking fuel outstrips provide.
He mentioned infrastructure to help the enlargement is advancing, with the Oben-Obiafu-Obrikom (OB3) pipeline, the Escravos-Lagos Pipeline System (ELPS) midline compressor practically full and the Ajaokuta-Kaduna-Kano pipeline now greater than 80 per cent constructed.
Once on stream, Umar mentioned the fuel pipelines would double nationwide fuel transport capability from 2.2 to 4.4 billion cubic toes per day and linking southern provide to northern demand.
“Since revision 1, more shippers have come onto the network, and the imbalance on the Western network has fallen by about 30 per cent. Revision II builds on these gains, and I invite every shipper, transporter and investor to make full use of that,” Umar mentioned.
He defined that the Revision II supplies clearer guidelines for shippers and consumers, together with provisions on shrinkage issue, noting that top shrinkage from mistaken fuel injection creates avoidable losses.
The code additionally lays the preliminary guidelines for regional pipelines, together with the West African Gas Pipeline, the proposed Trans-Saharan Pipeline to Algeria and the Trans-African Pipeline to Morocco, requiring harmonised requirements for cross-border fuel motion.
On downstream safety, Umar mentioned a yr in the past greater than half of petrol in Nigerian tanks was imported, however final month three in each 4 litres had been refined domestically.
This he mentioned, means vitality safety constructed at residence as Nigerian crude refined in Nigeria is supplying Nigerians.
He nevertheless cautioned that a lot of present provide comes from one massive refinery which ran above nameplate capability in September, stressing the necessity for range by way of modular refineries, the 4 nationwide refineries and aggressive imports.
He mentioned import licences will probably be issued solely on printed merit-based standards and clear shortfall dedication.
On consumption tendencies, Umar mentioned Liquefied Petroleum Gas (LPG) consumption has risen by virtually half since 2021, whereas Compressed Natural Gas (CNG), which was virtually non-existent six years in the past, is increasing, with presidential directive to double penetration by year-end to improve vitality flexibility.
He disclosed that petrol inventory cowl stands at 24 days, beneath the 30-day threshold, whereas cooking fuel is tighter, with diesel and aviation gas comfortably above thresholds.
According to him, world guideline by the International Energy Agency (IEA) is 90 days, however Nigeria targets 30 to 45 days first.
“Over the past eight months, a war in the Gulf has shaken the world’s fuel supply and pushed crude oil to around $100 a barrel. Through it all, Nigeria kept its fuel flowing, because more of that fuel is now made here at home,” Umar mentioned.
He revealed superior talks with the Nigerian National Petroleum Company Limited (NNPC) to pilot the nationwide strategic inventory on the
Nigerian Pipelines and Storage Company Limited (NPSC) depots in Ibadan, Enugu and Suleja, to cushion the economic system in opposition to value and provide shocks.
“Secure energy is energy we produce, we move, we store and price well for ourselves. Shared prosperity is what follows when the value of that energy stays and circulates within our economies and across our continent,” Umar mentioned.
He additionally introduced high quality assurance enlargement, with the primary of 9 gas laboratories launched in Port Harcourt, two extra by year-end and 9 purposeful by mid-2027 in partnership with Bureau Veritas and Ace Energy and Power Solutions in the direction of a National Reference Laboratory.
He mentioned all Premium Motor Spirit (PMS) equipped in Nigeria was on-spec, with market knowledge printed month-to-month, and that NMDPRA doesn’t set costs below the Petroleum Industry Act (PIA) however ensures truthful competitors.
With 215 trillion cubic toes confirmed fuel reserves and 600 TCF potential, Umar mentioned Nigeria wants $30 to $50 billion contemporary funding in processing, fertiliser, LPG and flare commercialisation.
He proposed an aligned gas requirements and a West Africa reference value to scale back dependence on European benchmarks like Amsterdam, Rotterdam, Antwerp (ARA) benchmarks.
