The Nigerian Midstream and Downstream Petroleum Regulatory Authority has granted approval for an interim transportation tariff to the NNPC Gas Infrastructure Company Limited, a subsidiary of the Nigerian National Petroleum Company Limited.

In a Monday statement, the authority said the approval was issued in accordance with Sections 122 and 123 of the Petroleum Industry Act (PIA) 2021 and the Natural Gas Pipeline Tariff Regulations 2023.

According to the authority, the transportation tariff took effect on July 1 and will remain in force until December 31.

The NMDPRA set the interim rate at $1.13 per thousand standard cubic feet (mscf), using the “postage stamp” methodology, which applies a uniform charge to all users irrespective of distance or location.

“The approval followed through a rigorous review process, analysis of market conditions, the need to ensure affordability and fair return on investment as well as other relevant factors in line with provisions of the PIA 2021,” the agency said.

The agency said the approved rate applies to key gas transportation networks, including the Escravos–Lagos Pipeline System (ELPS I & II), Oben–Ajaokuta, Oben–Geregu, the eastern network, the Obiafu–Obrikum–Oben (OB3) line, and the Ajaokuta–Kaduna–Kano (AKK) pipeline.

“Please note that during the interim period, the Authority shall initiate and conclude the process of stakeholders’ consultation for the formal adoption of the applicable transportation tariff methodologies,” the statement reads.

The NMDPRA called on all licensees and stakeholders to apply the approved rate in their transactions and adhere to the provisions of the PIA and the Natural Gas Pipeline Tariff Regulations.