Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has approved an interim transportation tariff for the NNPC Gas Infrastructure Company (NGIC) Limited, which operates as a subsidiary of the Nigerian National Petroleum Company (NNPC) Limited.
Gatekeepers News reports that the approval, announced in a statement on Monday, aligns with the provisions outlined in sections 122 and 123 of the Petroleum Industry Act (PIA) 2021, as well as the Natural Gas Pipeline Tariff Regulations 2023.
The NMDPRA has established the interim tariff at a rate of $1.13 per thousand standard cubic feet (mscf). This rate was determined using the “postage stamp” methodology, which entails applying a uniform tariff across all users, irrespective of their distance or location from the gas infrastructure.
“The approval followed through a rigorous review process, analysis of market conditions, the need to ensure affordability and fair return on investment as well as other relevant factors in line with provisions of the PIA 2021,” the agency said.
The approved rate, according to the agency, covers major gas transportation networks, including the Escravos-Lagos Pipeline System (ELPS I & II), Oben-Ajaokuta, Oben-Geregu, the eastern network, the Obiafu-Obrikum-Oben (OB3) line, and the Ajaokuta-Kaduna-Kano (AKK) pipeline.
“Please note that during the interim period, the Authority shall initiate and conclude the process of stakeholders’ consultation for the formal adoption of the applicable transportation tariff methodologies,” the statement reads.
The NMDPRA urged all licensees and stakeholders to implement the approved rate in transactions and comply with the provisions of the PIA and the natural gas pipeline tariff regulations.
