NMDPRA Launches Revision 2 Gas Transportation Code for Nigeria

• The NMDPRA has launched Revision 2 of the Nigerian Gas Transportation Network Code to improve pipeline access for shippers and reduce losses.
• The updated code establishes clearer rules for gas injection, measurement, and nomination, building on the success of Revision 1.
• Revision 1 led to more shippers on the network and a 30% reduction in imbalance on the Western Network.
• The code addresses the gas shrinkage factor and other technical/commercial issues causing losses in shared infrastructure.
• It supports cross-border gas transportation by providing a common framework for regional gas flows, including projects like the Trans-Saharan Gas Pipeline.

A common network code ensures consistency in gas measurement, communication, and custody transfer, which is vital for seamless international gas movement.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has officially launched Revision 2 of the Nigerian Gas Transportation Network Code, a significant update designed to enhance access to pipelines for gas shippers. This revised framework aims to substantially reduce avoidable losses within the system and fortify the overall structure for transporting gas, not only across Nigeria but also to other African nations. The announcement was made by Rabiu Umar, the Authority Chief Executive of the NMDPRA, during the 2026 OTL Africa Downstream Energy Week held in Lagos.

Umar emphasized that this second iteration of the code is crucial for establishing clearer, more definitive rules for both shippers and transporters utilizing the country's extensive gas pipeline network. This is particularly pertinent as Nigeria continues to expand its gas transportation capacity through new infrastructure projects. The NMDPRA's objective is to create a more efficient and transparent operating environment for all stakeholders involved in gas movement.

The core function of the Nigerian Gas Transportation Network Code is to serve as a comprehensive rule book for gas transmission, providing guidelines on how gas producers inject their product into shared pipelines. It meticulously outlines the methods for measuring gas volumes and the procedures by which shippers nominate the quantities they intend to transport through the network. These standardized procedures are deemed essential because multiple producers often utilize the same pipelines, necessitating clear protocols to ensure transparency and effectively prevent disputes among parties.

Building on the achievements of its predecessor, Revision 2 leverages the progress made since the introduction of the first version of the code. Since Revision 1, the network has seen an increase in the number of shippers, alongside a notable 30 percent reduction in imbalance on the Western Network. The updated code also addresses critical technical and commercial issues that can lead to losses within shared infrastructure, such as the gas shrinkage factor, which accounts for gas lost or consumed during transportation and processing. Clear regulations in this area are vital for safeguarding operators and boosting operational efficiency, as high shrinkage factors directly translate to increased costs and operational challenges.

Beyond domestic improvements, the revised NMDPRA Revision 2 gas transportation code is strategically designed to bolster the development of cross-border gas transportation. It provides a unified framework for managing gas flows between different countries, a crucial element for regional energy integration. Nigeria already plays a role in regional gas transport through the West African Gas Pipeline, and future projects, such as the proposed Trans-Saharan Gas Pipeline to Algeria and the Trans-African pipeline to Morocco, underscore the importance of such a common regulatory framework.

Rabiu Umar highlighted that disparate operating rules between countries can significantly complicate cross-border gas movements. Therefore, common standards and procedures are indispensable for ensuring smooth and efficient gas flows across national borders. A common network code ensures consistency in gas measurement, communication, and custody transfer, which is vital for seamless international gas movement. This revision represents an important step towards harmonizing Nigeria gas pipeline regulations with regional and continental energy ambitions.

Lawyers and compliance officers must review the NMDPRA's Revision 2 of the Nigerian Gas Transportation Network Code to understand updated rules for gas transportation, pipeline access, and measurement, advising clients on compliance, contractual implications, and operational adjustments, especially for cross-border gas flows.

Source: Original reporting via industry conference remarks.