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The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has announced a revised base gas price for companies in the power sector and commercial users for the year 2024.
Farouk Ahmed, the CEO of NMDPRA, signed the statement confirming this adjustment.
According to the new rates, companies in the power sector will be charged $2.42 per million British thermal units (MMBTU) for wholesale gas purchases, while commercial users will pay $2.92 per MMBTU for natural gas.
The decision is supported by provisions outlined in the new Petroleum Industry Act (PIA), as stated by the NMDPRA.
“The Petroleum Industry Act (PIA) 2021 assented to by the President on the 16th of August 2021 and gazetted on the 27th of August 2021 provides a clear regulatory framework for the determination of a Market-based pricing regime for the domestic gas market in Nigeria.
“in line with Section 167, the Third and Fourth Schedule of the PIA 2021, the Nigerian Midstream & Downstream Petroleum Regulatory Authority (NMDPRA) is mandated to determine the Domestic Base Price (DBP) and the marketable wholesale price of natural gas supplied to the strategic sectors”
“Accordingly, after due consultation with key stakeholders and taking into cognisance the provisions of the PIA, as well as the gazetted Gas Pricing and Domestic Demand Regulations, the NMDPRA hereby establishes the Year 2024 Domestic Base Price as USD 2.42 / MMBTU”
Additionally, the NMDPRA set the floor prices for gas-based industries such as producers of ammonia, methanol, low sulphur diesel at $0.90 MMBTU while the ceiling prices is $2.42 MMBTU.
