NMDPRA sets deadline for submissions on proposed gas tariff review, announces January meeting

The Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, has set a deadline for submissions on the proposed tariff methodologies for midstream gas facilities and infrastructure.

The Authority disclosed this in a public notice of consultation with stakeholders issued by its Chief Executive, Rabiu Abdullahi Umar.

The regulator urged stakeholders in Nigeria’s gas sector to submit contributions on its proposed tariff methodologies.

According to the notice, the consultation is in compliance with Sections 123 (3), (4) and (5) of the Petroleum Industry Act, PIA, 2021, which requires the regulator to engage relevant stakeholders before establishing tariff methodologies.

The proposed review will cover tariffs charged by licensees for the use of facilities and infrastructure licensed by the Authority for midstream gas operations.

NMDPRA said the proposed tariff methodologies would apply to gas processing, transportation and distribution infrastructure under its regulatory jurisdiction.

The Authority called for submissions on several areas, including the proposed principles and structure of tariff methodologies, recovery of reasonable and efficiently incurred costs, determination of reasonable returns on invested capital, and efficiency incentives to improve service quality.

Other areas include tariff structures for gas processing facilities, transportation pipelines and distribution licences, as well as charges relating to allocation, metering and ancillary services.

It also requested contributions on measures to prevent economic distortions and promote competitive petroleum and natural gas markets.

The regulator further proposed differentiated tariffs for creditworthy shippers willing to commit to long-term ship-or-pay arrangements, where applicable.