The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is set commence consultations for the proposed tariff methodologies for gas processing plants, pipelines and distribution infrastructure, as part of efforts to establish how operators charge companies for using the facilities.
The proposed framework is expected to guide tariffs charged by licensees for the use of facilities and infrastructure regulated by the authority, including gas processing, transportation and distribution networks.
In a public notice on Wednesday, the NMDPRA invited stakeholders to submit comments on the proposed methodologies, in line with Sections 32 and 123 of the Petroleum Industry Act (PIA) 2021.
The authority said the proposed framework would provide for the recovery of reasonable and efficient costs incurred by operators, while allowing them to earn a reasonable return on invested capital.
It also identified efficiency incentives and service quality as issues to be considered in determining tariffs.
The consultation will cover tariff structures for gas processing, transportation and distribution, as well as allocation, metering and other ancillary services.
The authority said the methodology should avoid economic distortions and promote competitive markets in the petroleum and natural gas sectors.
It is also considering differentiated tariffs for credit-worthy shippers willing to enter into long-term ship-or-pay arrangements.
Under such arrangements, a shipper commits to paying for an agreed level of pipeline capacity, even where it does not use the entire capacity reserved.
The proposed approach could provide greater revenue certainty for infrastructure operators while offering different tariff arrangements for customers willing to make long-term commitments.
The NMDPRA said interested stakeholders should submit their comments and proposals to its Executive Director, Economic Regulations and Strategic Planning, through nmdpra-pricingandtariff@nmdpra.gov.ng.
Submissions are expected by December 9, 2026, while a stakeholder consultation meeting has been scheduled for January 6, 2027, at 10am in Abuja.
The consultation is part of the authority’s process for developing the tariff methodologies. It does not represent an announcement of new approved tariffs or an immediate change in the prices charged for gas services.
