DPR to lunch Gas Transportation Network Code at NIPS 2020
…Decries dipping of gas reserves since 2013
The Department of Petroleum Resources (DPR) has confirmed that a formal, special launch of the Nigerian Gas Transportation Network Code (NGTNC) is scheduled for Monday, February 10, 2020, during the opening day of the coming Nigerian International Petroleum Summit in Abuja.
The Department said the lunching is part of the drive on the on-going implementation of the NGTNC. “The review of the Network Code licensing framework and development of all its ancillary agreements have been firmed”, it said in a statement yesterday in Abuja.
It confirmed, however, in a recent report equally released yesterday that Nigeria’s natural gas reserves has been on the increase from 2013 and is projected to continue to grow at a conservative rate of about 1.0%. It said the reserves volume of the operated deep-water acreages in Nigeria is about 21% of the country’s total reserves of liquid hydrocarbons (7.746 BillionBbls/37.002BillionBbls). Yet the acreages accounted for about 36.08% of the Nation’s total production in 2018, the latest report by the DPR said.
The report further said that the deep-water tracts, which are grouped under Production Sharing Contract (PSC) regime, “had the highest depletion rate of 3.10% and the lowest life index of 32.15 years, when compared to the other contract regimes”, the DPR said in the report released annually.
“Perhaps, the companies may have taken advantage of the poor government take in the deep offshore terrain to deplete the reserves there-in with little regard for long term sustainable production as amplified by the life index” it declared.
DPR revealed further that in 2018, gas development picked up to six (6) Non-Associated Gas (NAG) development plans from two (2) NAG development plans in 2017. The growth, it argues, is attributable to growing commitments to gas projects.
“The Domestic Supply Obligation (DSO) performance was about 48.0%. The national gas capacity performance for 2018 was about 80.0% with an average 1.3Billion standard cubic feet of gas per day (Bscf/d) gas delivery to the domestic market,” the report said.
DPR also said that overall, gas utilization in the country for 2018 shows the export market accounting for 41%, field/plant use accounts for 32%, domestic market is about 13.6% and flared gas is 11%.
“The zero routine gas flaring target in 2020 is vigorously being pursued by the Department. The impact of regulatory instruments such as flare gas (Prevention of Waste and Pollution) regulations 2018 would undoubtedly facilitate the attainment of the zero-flare elimination target and improve gas utilization in the coming years”,” the regulatory agency said.