By Hosea Parah, Abuja
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has announced a new gas transportation tariff order, setting the cost of moving natural gas across key pipeline networks at $1.13 per thousand standard cubic feet (Mscf).
The directive, dated March 6, 2026, and issued to all gas offtakers, follows provisions of the Petroleum Industry Act 2021 and the Natural Gas Pipeline Tariff Regulations 2023. It grants tariff approval to the Nigerian Infrastructure Company Limited for a two-year period spanning January 1, 2026, to December 31, 2027.
According to the Authority, the tariff was determined using a postage stamp methodology, which ensures a uniform rate for all users regardless of their entry or exit points on the pipeline network. This approach is aimed at promoting fairness, affordability, and investment stability within Nigeria’s gas transportation sector.
The approved tariff applies to major gas transportation systems across the country, including the Escravos–Lagos Pipeline System (ELPS I & II), Oben–Ajaokuta, Oben–Geregu, the Obiafu–Obrikum–Oben (OB3) line, the Eastern Network, and the Ajaokuta–Kaduna–Kano (AKK) Pipeline.
NMDPRA stated that the decision followed extensive stakeholder consultations and a detailed assessment of prevailing market conditions. The regulator emphasized that the pricing framework balances the need to keep gas transportation affordable while ensuring a fair return on investment for infrastructure operators.
All licensees and stakeholders have been directed to comply fully with the new tariff structure in line with the Petroleum Industry Act and existing regulatory guidelines.
The Authority reiterated its commitment to strengthening Nigeria’s gas infrastructure and enhancing transparency in the energy sector.