The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has announced an amended gas price for companies in the power sector and commercial users for 2024.
This was confirmed in a statement signed by the CEO of NMDPRA, Farouk Ahmed.
The new rates specifies that 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.
According to the NMDPRA, the decision is supported by provisions outlined in the new Petroleum Industry Act (PIA).
“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”.
The NMDPRA also established 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.
Chinedum Anayo