Consistent with the Federal Government’s objective of improving gas supply to the domestic market, the Department of Petroleum Resources (DPR), on 8th August, 2020, granted a license to Gas Aggregation Company Nigeria Limited (GACN) to act as an Agent for Licensed Shippers within the framework of the Nigerian Gas Transportation Network Code (NGTNC).
The NGTNC is a contractual framework between the gas transportation Network Operator (NGC) and Shippers (Gas Buyers and Sellers). The NGTNC which was operationalized on 10th August, 2020, specifies terms and guidelines for operation and use of the gas transportation network with the aim of providing open and competitive access to gas transportation infrastructure in line with global best practices.
GACN is the first and currently the ONLY licensed Shippers’ Agent on the Network Code.
GACN will optimize its strategic position in the Nigerian gas market to create value for Shippers who appoint GACN as Agent. Some of the benefits which GACN promises to offer its appointing Shippers include: effective and optimized Shipper portfolio management, market optimization of the gas transportation network, reduction in transaction cost and operational burden of Shippers, seamless value chain Stakeholder management and focused alignment, amongst others.
GACN is currently engaging DPR, NGC and other relevant Stakeholders to facilitate the timely implementation of the NGTNC.