Uncategorized FAQ

• GACN’s core mandate and rationale are directly linked to FGN’s economic development plans and NNPC’s Gas Sector development objectives; thereby, requiring ongoing FGN ownership linkage.
• Giving private entities control over GACN is extremely risky and would undermine NNPC and FGN’s ability to leverage on the Gas Sector through GACN to improve Economic Development.

• GACN is commercially neutral being a “not for profit” entity.
• It’s operating budget is funded by Gas Sellers and Buyers based on Sellers Domestic Gas Supply Obligations and Buyer’s offtake volume.
• GACN’s funding could be further improved by basing it on minimal surcharge/fee per GACN operationalized transaction.

• GACN is a creation of FGN’s Regulation and almost all its core mandates stipulate an ongoing role.
• Commentators often confuse GACN’s aggregation role as its sole mandate and therefore question its continued relevance upon the future attainment of “willing buyer-willing seller.”

No

It performs roles which are akin to an Agency.

 No

Currently NGMC and SNG

• GACN does not sell natural gas to industries or manufacturing companies. Such business purchases their gas from Local Distribution Companies (LDCs) who buy gas from GACN.
• GACN does not produce, process, or transport natural gas.
• GACN does not build gas pipelines or gas infrastructure.
• GACN is not a regulator.

• Buyer logs gas request with GACN through an introductory letter indicating gas use, volume and plant location.
• GACN invites Buyer to an introductory meeting wherein Buyer is expected to make a formal presentation of proposed project. In conclusion, GACN also presents its roles and responsibilities in the domestic gas market and gives an outline of the Due Diligence process.
• Buyer makes payment of mandatory processing fee to access DSO gas within GACN framework.
• On confirmation of receipt of payment of the above fee, GACN issues Due Diligence documents to Buyer.
• Buyers receives and issues acknowledgement for gas request form and Due Diligence Questionnaire.
• Buyers completes Gas Request Form (GRF) and Due Diligence (DD) Questionnaire.
• Simultaneously, GACN executes Confidential Agreement with the Buyer.
• Buyers submits completed DD Questionnaire and GRF to GACN
• GACN evaluate buyer’s submission based on DPR approved methodology. As part of the process, GACN carries out a site verification visit to the Buyer’s proposed project/facilities and if successful at the end of the evaluation, progresses to the Gas Demand Pool.
• GACN allocates Gas Sellers (S) and indicative Transporter to Buyers’ accepted to Gas Demand Pool, based on gas availability and delivery time of project.
• GACN facilitates negotiation and execution of GSAA (Gas Sale and Aggregation Agreement) between the Buyer & Seller(s).

• Power generation companies whose sole business is to generate power into the national grid.
• Companies who use natural gas as feedstock for their products, such as fertilizer and petrochemicals. I.e. Gas based industries.
• Local distribution companies who sell natural gas to commercial and manufacturing companies in the domestic market I.e.