The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has released the Domestic Base Price (DBP) and applicable wholesale price of natural gas for strategic sectors.
Authority Chief Executive, Farouk Ahmed, who signed the letter transmitting the Domestic Base Price (DBP )of $2.42 per Million British Thermal Unit (MMBTU), said the base price and applicable wholesale natural gas price for the strategic sector is in line with the provisions of the Petroleum Industry Act (PIA)
Which provides a clear regulatory framework for the determination of a market-based pricing regime for the domestic gas market in Nigeria.
As prescribed in the PIA, The Authority Chief Executive emphasized that going forward, the price of natural gas must be at a level to bring forward sufficient natural gas supplies for the domestic market on a voluntary basis by the upstream producers.
Other principles that guided the determination of the Domestic Base Price as explained by the NMDPRA include That The price shall not be higher than the average of similar natural gas prices in major emerging countries that are significant producers of natural gas.
The Authority maintained that the new domestic base price was arrived at after due consultation with key stakeholders
as well as the gazetted gas pricing and domestic demand regulations.
