*Targets 9 gasoline laboratories nationwide by H1 2027
*Authority, NNPC advance talks to pilot nationwide strategic gasoline reserve
Peter Uzoho
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA)! has expanded fuel provide entry to energy vegetation, fertiliser vegetation 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 vegetation, fertiliser vegetation, shippers and buyers.
Umar stated the brand new code will deepen home fuel utilization and guarantee open, honest 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 should you 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 stated.
Speaking beneath the summit’s theme “Secure Energy, Shared Prosperity,” Umar stated the code revision comes as fuel demand rises, with about three-fifths of fuel processed in September deployed to energy vegetation, factories, NLNG and the West African Gas Pipeline (WAGP) whereas demand for cooking fuel outstrips provide.
He stated infrastructure to assist 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 stated the fuel pipelines would double nationwide fuel transport capability from 2.2 to 4.4 billion cubic ft 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 stated.
He defined that the Revision II gives clearer guidelines for shippers and consumers, together with provisions on shrinkage issue, noting that prime shrinkage from unsuitable 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 stated a yr in the past greater than half of petrol in Nigerian tanks was imported, however final month three in each 4 litres have been refined domestically.
This he stated, means vitality safety constructed at dwelling as Nigerian crude refined in Nigeria is supplying Nigerians.
He nevertheless cautioned that a lot of present provide comes from one giant refinery which ran above nameplate capability in September, stressing the necessity for variety by way of modular refineries, the 4 nationwide refineries and aggressive imports.
He stated import licences will likely be issued solely on revealed merit-based standards and clear shortfall dedication.
On consumption tendencies, Umar stated 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, under the 30-day threshold, whereas cooking fuel is tighter, with diesel and aviation gasoline comfortably above thresholds.
According to him, international 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 stated.
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 financial system towards 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 stated.
He additionally introduced high quality assurance enlargement, with the primary of 9 gasoline 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 direction of a National Reference Laboratory.
He stated all Premium Motor Spirit (PMS) provided in Nigeria was on-spec, with market knowledge revealed month-to-month, and that NMDPRA doesn’t set costs beneath the Petroleum Industry Act (PIA) however ensures honest competitors.
With 215 trillion cubic ft confirmed fuel reserves and 600 TCF potential, Umar stated Nigeria wants $30 to $50 billion recent funding in processing, fertiliser, LPG and flare commercialisation.
He proposed an aligned gasoline requirements and a West Africa reference value to cut back dependence on European benchmarks like Amsterdam, Rotterdam, Antwerp (ARA) benchmarks.
