NMDPRA Fixes Interim $1.13/Mscf Gas Transportation Tariff For Pipelines

The Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA) has approved an interim gas transportation tariff of $1.13 per thousand standard cubic feet (Mscf) for pipelines operated by the NNPC Gas Infrastructure Company Limited (NGIC). This tariff will be in effect from July 1 to December 31, 2025, covering six major gas transportation networks across Nigeria.

The interim tariff aims to enhance the economic viability of Nigeria's gas pipeline infrastructure by providing operators with payment flexibility and currency options to avoid debt cost structure issues. The NMDPRA emphasized that this interim tariff is a transitional measure while stakeholders finalize and formally adopt a permanent gas transportation tariff methodology.

The tariff determination complies with the Petroleum Industry Act (PIA) 2021 and the Natural Gas Pipeline Tariff Regulations 2023, ensuring uniform rates for all gas transportation customers regardless of distance. Stakeholders are urged to apply the interim tariff in line with the provisions of the PIA 2021.