By Aliyu Galadima
Nigerian Midstream and Downstream Petroleum Regulatory Authority ,NMDPRA, has approved an interim transportation tariff for natural gas pipelines operated by NNPC Gas Infrastructure Company Limited, NGIC.
NMDPRA, in a notice of interim approval issued on Monday, said the approval is effective from July 1 to December 31, 2025.
The approval, which was issued in compliance with Sections 122 and 123 of the Petroleum Industry Act (PIA) 2021 and the Natural Gas Pipeline Tariff Regulations 2023, pegged the interim tariff at $1.13 per thousand standard cubic feet ,Mscf.
According to the Authority, the tariff determined using the postage stamp methodology ensures a uniform rate for all users regardless of distance or location.
The process, it noted, followed rigorous market analysis, with consideration for affordability, fair returns on investment, and alignment with PIA provisions.
According to NMDPRA, the tariff applies to major gas transportation networks, Escravos–Lagos Pipeline System ,ELPS I & II; Oben–Ajaokuta; Oben–Geregu; Obiafu–Obrikum–Oben ,OB3; Eastern Network; and Ajaokuta–Kaduna–Kano ,AKK, Pipeline System.
NMDPRA further disclosed that during the interim period, it will conclude stakeholder consultations for the formal adoption of transportation tariff methodologies.
“In accordance with sections 122 & 123 of the Petroleum Industry Act (PIA) 2021, and the Natural Gas Pipeline Tariff Regulations 2023, the Authority has determined and granted NNPC Gas Infrastructure Company Limited ,NGIC, an interim transportation tariff approval effective July 1, 2025 to December 31, 2025.
“The interim Tariff was determined based on the postage stamp methodology, which ensures a uniform tariff rate across all users irrespective of distance or location.
“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 interim tariff for natural gas transportation is established as USD 1.13/ Mscf and applies to the following: Gas transportation network; Gas Transportation Networks Escravos-Lagos Pipeline System ,ELPS I≪ Oben-Ajaokuta; Oben-Geregu; Obiafu-Obrikum-Oben ,OB3; Eastern Network; and Ajaokuta-Kaduna-Kano Pipeline System ,AKK.
“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.
“Consequently, all licensees and relevant stakeholders are required to implement the interim tariff in all transactions and strictly comply with the provisions of the PIA 2021 and the Natural Gas Pipeline Tariff Regulations 2023″, NMDPRA stated.
