Oredola Adeola

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has approved an interim transportation tariff of US$ 1.13 per Mscf for NNPC Gas Infrastructure Company Limited (NGIC), effective July 1 to December 31, 2025, covering all six gas transportation networks nationwide.

This was disclosed in a statement issued by the Authority and obtained by Advisors Reports on Monday.

According to the NMDPRA, the interim transportation tariff, effective from July 1 to December 31, 2025, will serve as a transition period.

During this period, the Authority is expected to conduct and conclude stakeholders’ consultations to formally adopt the applicable gas transportation tariff methodologies.

The Authority stated that the interim tariff was determined in compliance with sections 122 & 123, of the Petroleum Industry Act (PIA) 2021, and the Natural Gas Pipeline Tariff Regulations 2023.

Advisors Reports’ check showed that the single tariff rate is charged to a class of tariff, regardless of the distance in which natural gas is transported on the pipeline, the distance-
based tariff, or the zonal tariff.

The NMDPRA further explained that 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.

It emphasised that 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.