PETROLEUM INDUSTRY ACT, 2021

Section 137: Conditions Applicable to a Gas Transportation Pipeline Licence.

2021Section 137 of 320Federal Republic of Nigeria

A gas transportation pipeline licence shall, in addition to the conditions that may be imposed by the Authority under section 114 of this Act, be deemed to be granted subject to the condition that—
(a) the holder shall not supply natural gas to customers on its own account where the licence is granted on a common carrier basis;
(b) a licensee operating on its own account, who is an affiliate of a lessee, may own, or the affiliate may own, the natural gas in a gas transportation pipeline, for the purpose of—
(i) connecting marketable natural gas produced in a field under a lease with an affiliate to another gas transportation pipeline or gas transportation network, and
(ii) transporting natural gas to a plant for conditioning or processing natural gas from fields under lease with an affiliate,
subject to third party access provisions as may be included in the licence;
(c) a licensee operating on its own account, who is also a wholesale customer or holder of a gas distributor licence, may own the natural gas in a gas transportation pipeline, where it is the principal user of the natural gas, subject to any third party access provisions as may be included in the licence;
(d) a licensee operating on its own account, who is also a holder of a wholesale gas supply licence, may own the natural gas in a gas transportation pipeline, for the purpose of connecting a lessee or wholesale customer to or from a gas transportation network or gas transportation pipeline, subject to such third party access provisions as may be included in the licence;
(e) the holder shall conduct its licenced activities safely and reliably in compliance with any law in force and prescribed health and safety regulations issued under this or any other Act;
(f) the holder shall have regard to the effect of its licenced activities on the environment and comply with the requirements of environmental protection, management and restoration under this Act and any law in force;
(g) the holder shall mark, maintain and secure the boundaries of the pipelines and associated infrastructure constructed under the terms of its licence and any law in force;
(h) a pipeline transporting un-processed gas to a gas processing plant or gas conditioning plant shall require a gas transportation pipeline licence and the Commission shall—
(i) determine and advise the Authority on the characteristics of the gas to be transported, and
(ii) cooperate with the Authority in determining possible third party access to the pipeline; and
(i) the gas transportation pipeline may, with the approval of the Authority, be in whole or in part, a low-pressure pipeline at the request of the licensee.

Cite this section

Section 137, PETROLEUM INDUSTRY ACT, 2021 (2021).

https://repo.podus.ai/laws/petroleum-industry-act-2021/section/137/