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NNPC to set up company to regulate gas master plan

The Minister of Petroleum Resources, Dr Rilwanu Likman in giving the approval for setting up the company said the company would be a limited liability…

The Minister of Petroleum Resources, Dr Rilwanu Likman in giving the approval for setting up the company said the company would be a limited liability company and would have exclusive right to perform the duties of an aggregator as outlined in the Nigerian Gas Master Plan, for an initial period of five years.

“The company will be subject to strict regulatory oversight by the proposed Mid-Stream Regulator anticipated in the Petroleum Industry Bill (PIB),’’ the minister said last Friday.

He however, said, pending the establishment of such regulator, the office of the Minister of Petroleum Resources would carry out all necessary oversight roles in respect of the company.

According to him, the primary roles of the Strategic Aggregator (SA) Company would among other things include, acting as the focal point of contact for would-be-purchasers and suppliers of gas, carrying out due diligence on the potential gas buyers and facilitate the execution of Gas Supply Purchase Agreements (GSPAs) for successful investors in a timely manner and managing the receipt of payments and the disbursement of an aggregate gas price to suppliers according to the agreed aggregation principles and facilitating the execution of necessary payment securities in respect of default in gas payment.

The minister stressed the importance of the SA Company to the successful delivery of the nation’s domestic gas agenda.

According to him, NNPC, given its role as the most dominant gas supplier would coordinate with the Joint Venture partners and other relevant stakeholders to formalize the proposed company that would be the Strategic Aggregator.

The minister noted that the move was a milestone in the efforts to jump-start a sustainable domestic gas market.