Library / B 35 Federal Republic of Nigeria Official Gazette No. 34
B 35 Federal Republic of Nigeria Official Gazette No. 34

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(5)  A gas transportation agreement existing under a gas transportation
pipeline on open access or gas transportation network, shall from the
commencement of these Regulations cease to be effective and is replaced by
a gas network code framework agreement.
(6)  For the purposes of this regulation —
(a)  “capacity charge” means a charge determined by the amount of a
shipper’s registered system entry capacity at a system entry point, or
registered system exit capacity at a system exit point and payable by the
shipper irrespective of whether the reserved capacity is utilised or not; and
(b)  “commodity charge” is a charge determined by the quantity of gas
flow at a system point attributed to a shipper that varies in direct proportion
to actual throughput of natural gas by a shipper.
4.—(1)  The Authority may approve different classes of capacity charge
for the same gas transportation pipeline or gas transportation network.
(2)  The classes of capacity charge under regulation 7(1) of these
Regulations may be determined —
(a)  with reference to gas transportation networks and gas transportation
pipelines  on open access, —
(i)  types and industries of the end-users of the natural gas transported
by shippers, based on the criteria approved by the Authority,
(ii)  agreements with shippers facilitating the financing of new gas
transportation pipeline, and
(iii)  other basis as may be approved by the Authority ;
(b)  with respect to gas transportation pipelines for its own account of
anoperator —
(i)  a notional charge applicable to the operator  making its own priority
use of the pipeline or charge applicable to its affiliate using the pipeline,
provided that such notional charge shall be determined on an arms-length
basis by the operator,
(ii)  charge applicable to shippers using spare capacity in the pipeline,
and
(iii)  such other basis as may be approved by the Authority.
(3)  For gas transportation networks and gas transportation pipelines  on
open access, each class of capacity charge shall be charged in respect of
reserved capacity under gas network code framework agreements.
(4)  For gas transportation pipelines for its own account of the
operator, the —
(a)  notional charge applicable to the operator or actual charge to its
affiliate shall be such that the allocation of charges between the operator
and the shippers  is acceptable ; and
Tariff
relating to
capacity
charge.