The Gas Aggregation Company Nigeria (GACN) has disclosed its intention to review existing terms in the Gas Sale and Aggregation Agreements (GSAA) used in Nigeria’s domestic gas market.
The decision, it explained in a statement was to ensure that current market realities such as equitable risk allocation between parties in such agreements are adequately captured following growing interests and government’s commitment to Nigeria’s gas resources and market.
It noted that the planned review would be done over a two-day period in a workshop scheduled for this week with relevant stakeholders.
The statement indicated that the Company Secretary and Legal Adviser to the Nigerian National Petroleum Corporation (NNPC) Hadiza Coomassie, the Chair of GACN and Managing Director of the Nigerian Petroleum Development Company (NPDC), Mansur Sambo, as well as the Managing Director of GACN, Mr. Olalekan Ogunleye are scheduled to speak at the workshop to be facilitated by a commercial law firm, Banwo & Ighodalo.
According to the statement, the workshop was set up, “in a bid to enhance and quicken the process for negotiation of gas sale agreements in Nigeria’s domestic gas market.”
It added that the GACN as Nigeria’s strategic gas aggregator, wanted to, “facilitate discussions among industry stakeholders in relation to Master Gas Sale and Aggregation Agreements (Master GSAAs) being adopted in connection with the sale of natural gas in the Nigerian domestic gas market.”
It further noted that the workshop, “will contribute significantly to the ongoing efforts of the federal government of Nigeria to promote and deepen gas utilisation and increase domestic gas consumption for the purpose of enhancing power generation and accelerating Nigeria’s industrialisation.”
The GACN stated that notwithstanding the challenges of the country’s oil and gas industry in 2020, the federal government has recorded significant progress in the sector, with the Minister of State for Petroleum Resources, Mr. Timipre Sylva and the Group Managing Director of NNPC, Mallam Mele Kyari launching works on the Ajaokuta, Kaduna, Kano (AKK) gas line project, finalising and sending the Petroleum Industry Bill (PIB) to the National Assembly, as well as launching the network code for gas transportation to deepen gas utilisation in Nigeria.
“The foregoing therefore presents an enabling backdrop for vital gas sector stakeholders to key into the governments vision bearing in mind the declaration of year 2020 as the ‘Year of Gas’ by the Honourable Minister of State, Chief Timipre Sylva and the Group Managing Director of NNPC- Mallam Mele Kolo Kyari.
“GACN’s decision to host the workshop is in recognition of the increasingly dynamic nature of the Nigerian domestic gas market and a demonstration of GACN’s commitment to updating the Master GSAAs to reflect current market realities and ensure equitable risk allocation between parties to such agreements,” it further stated.