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Gas pricing, pipeline tariff… NMDPRA to release six regulations for midstream, downstream sector

Gas pricing, pipeline tariff… NMDPRA to release six regulations for midstream, downstream sector
May 22
16:15 2022

The Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says it is drafting six regulations on the midstream and downstream operations of the oil and gas sector.

Farouk Ahmed, authority chief executive (ACE), NMDPRA, said this at a meeting with members of the Independent Petroleum Producers Group (IPPG) in Abuja.

In a statement seen by TheCable, Ahmed said the regulations would bring clarity into the sector, improve business processes and also the ease of doing business.

The regulations include; gas pricing, environmental management plan, environmental remediation fund, decommissioning and abandonment, gas infrastructure fund and natural gas pipeline tariff.


Ahmed also said a working team chaired by Ogbugo Ukoha, executive director, distribution systems, storage and retailing infrastructure (DSSRI), was setup to review the draft regulations, engage and consult stakeholders for smooth implementation when released.

“One of our key concerns is boosting local refining. Dangote and BUA refineries are coming on board; however, we want to see more companies investing in refineries so we can stop the importation of refined petroleum products, save our foreign earnings, create jobs and add value to the economy,” he said.

The NMDPRA boss also commended the gradual growth of indigenous players in local exploration and production of petroleum products.


He also pledged the authority’s commitment in making the business climate in the midstream and downstream conducive for local and foreign investment to thrive.

Also speaking at the meeting, Abdulrazaq Isa, chairman, IPPG, said the group was an association of 25 indigenous exploration and production (E&P) companies with the vision to promote the continued development of the Nigerian petroleum industry for the benefit of industry stakeholders and the nation.

Isa noted that timely communication with industry players was important at this time that the authority is going through a transition period.

He further called on NMDPRA to urgently enact regulations on tariffs, domestic gas and clear license issuance modalities amongst others.


NMDPRA is the authority that is responsible for the technical and commercial regulation of the midstream and downstream operations in Nigeria’s oil and gas industry.



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