Afrindustria/ Gas Gap Monitor

Library / Page | 1 MIDSTREAM AND DOWNSTREAM PETROLEUM OPERATIONS REGULATIONS, 2024

Page | 1 MIDSTREAM AND DOWNSTREAM PETROLEUM OPERATIONS REGULATIONS, 2024

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j) conduct uncertainty analysis for the metering system in the manner 
prescribed by the Authority. 
42. (1) The Authority shall have power to witness and supervise the 
development of metering systems through - 
(a) meter selection;  
(b) conceptual design; 
(c) detailed engineering; 
(d) verification of accuracy of sampling systems, flow computers, 
gas chromatograph, proving systems and other critical 
components; 
(e) fabrication inspection; and 
(f) 
factory and site acceptance tests. 
Operations 
management 
and 
supervision of 
metering 
systems 
 
43. (1) The Authority shall approve petroleum allocation methodologies 
prior to implementation. 
(2) A licensee or permit holder shall report all cargo loss or shrinkage 
complaints to the Authority within 14 days of such complaints being made. 
(3) A licensee shall not apply a shrinkage, measurement loss or decanting 
method to petroleum liquids or natural gas or its derivatives without the 
prior approval of the Authority. 
Measurement 
loss and 
shrinkage 
CHAPTER 4 
PETROLEUM PIPELINES 
 
44. (1) Pursuant to Sections 125, 135, 148, 174, and 190 of the Act, a 
licensee or permit holder shall not construct or operate any pipeline or 
network for the transportation and distribution of  petroleum liquids or 
natural gas or its derivatives without a licence granted by the Authority, 
and in accordance with terms and conditions prescribed in guidelines 
made by the Authority. 
 
(2) A person shall not, for its own account with third party access provisions 
or as common carrier, establish, construct, or operate the following 
facilities without a valid licence issued by the Authority - 
 
(a) Gas transportation or distribution pipeline for conveying natural or 
gas derivatives; 
(b) Petroleum liquids transportation or distribution pipeline for 
conveying of petroleum liquids or derivatives; 
Prohibitions