The Nigerian Midstream and Downstream Petroleum Authority (NMDPRA), has thrown its weight behind Nigeria’s first automated global-level natural gas commodities exchange platform, launched by the Natural Gas Commodity Exchange (NGCX) to stimulate the Liquified Natural Gas trade, and develop an efficient and healthy gas market in the country.
The regulatory authority’s endorsement of the digital platform was confirmed after the joint committee meeting of the NGCX and the NMDPRA, chaired by Engr. Farouk Ahmed, Authority Chief Executive(ACE) on Wednesday.
Authority revealed that NGCX, supported by the Authority, is the first natural gas commodities exchange in Nigeria which aims to provide a marketplace where buyers and sellers can transact with an accurate price index.
NMDPRA further confirmed that the automated project is expected to promote the adoption of Autogas, LNG, CNG, LPG, & other Gas derivatives in line with the Decade of Gas declaration.
In a statement of NGCX, it was gathered that the exchange’s authorised platform offers several buyers and sellers of LNP, LPG and CNG the opportunity to trade spot and forward contracts.
According to the NGCX, one of NGCX’s main goals is to make gas price discovery more efficient and competitive while also protecting market integrity.
NGCX said, “Buyers and sellers trade the underlying commodity of Gas on NGCX.NG, a neutral and transparent exchange.
“Contracts traded at the Exchange are for a specific physical delivery that must be made, and trade settlement is based on the fact that such contracts are non-transferable and do not result in any netting-off.”
The company however stated that its target is to grow and account for at least 70 per cent volume of gas traded within Nigeria in the next few years, by expanding and creating an efficient peer-to-peer gas trading ecosystem, aiding and pushing for a sustainable, robust, self-sufficient future for the global economy.