Advisors ReportsAdvisors Reports
  • News
  • Editorial
  • Feature
  • Special Report
  • Oil & Gas
    • Upstream
    • Midstream
    • Downstream
  • Power
    • Generation
    • Distribution
    • Transmission
  • Renewables
    • Solar
    • Nuclear
    • Hydrogen
  • Extractive Industry
  • Maritime
Search
© 2022 Foxiz News Network. Ruby Design Company. All Rights Reserved.
Reading:  Electricity tariff hike looms, as NMDPRA sets 2024 gas prices: Power sector sees surge to $2.42/mmbtu
Share
Sign In
Notification Show More
Font ResizerAa
Advisors ReportsAdvisors Reports
Font ResizerAa
Search
  • News
  • Editorial
  • Feature
  • Special Report
  • Oil & Gas
    • Upstream
    • Midstream
    • Downstream
  • Power
    • Generation
    • Distribution
    • Transmission
  • Renewables
    • Solar
    • Nuclear
    • Hydrogen
  • Extractive Industry
  • Maritime
Have an existing account? Sign In
Follow US
© 2022 Foxiz News Network. Ruby Design Company. All Rights Reserved.
DistributionGasGenerationNewsPower

 Electricity tariff hike looms, as NMDPRA sets 2024 gas prices: Power sector sees surge to $2.42/mmbtu

Admin
Last updated: April 1, 2024 9:00 pm
Admin
Share
3 Min Read
SHARE

Oredola Adeola

 

The Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has unveiled the domestic base price (DBP) and wholesale prices of natural gas for 2024, increasing the gas price for power Generation Companies (GenCos) from $2.18mmbtu to $2.42/mmbtu, while commercial gas prices surged from $2.50mmbtu to $2.92mmbtu, hinting at a potential electricity tariff hike in the near future.

 

This announcement was made in a statement signed by Farouk Ahmed, the Chief Executive of the Authority, and obtained by Advisors Reports.

 

Advisors Reports therefore gathered that this latest decision by NMDPRA has brought an end to the January 2024, the Multi-Year Tariff Order (MYTO) 2024 issued by Nigerian Electricity Regulatory Commission (NERC) for the electricity distribution companies (DisCos)  calculated when natural gas was sold to the GenCos at $2.18c.

 

According to the ACE, the Petroluem Industry Act (PIA) 2021 assented to by the President on the August 16, 2021, and gazetted in August 2021 provides a clear regulatory framework for the determination of a Market-based pricing regime for the domestic gas market in Nigeria.

 

The Authority further stated that the action was taken in line section 167, the third and fourth schedule of the PIA 2021, mandated the regulator to determine the Domestic Base Price (DBP) and the marketable wholesales price of natural gas supplied to the strategic sectors.

 

It said, “The domestic base price at the marketable gas delivery point under Sector 167(1) and oother provisions of the PIA shall be determined based on regulations which incorporate among such other matters, the following principles.

 

“(a) The price must be of a level to bring forward sufficient natural gas supplies for the domestic market on a voluntaty basis by the upstream producers.

“(b) The price shall not be higher than the average of similar batural gas prices in major emerging countries that are significant producers of natural gas.

“(c) Lowest cost of gas supply based on three tier cost of supply framework.

“(d) Market related prices tied to Internationa Benchmarks.

 

NMDPRA therefore emphasised that it has set the 2024 Domestic Base Price at $2.42/MMBTU and wholesale prices for natural gas in strategic sectors, following consultations with stakeholders and in compliance with the PIA and Gas Pricing Regulations,

AMMON backs Tinubu’s ‘Nigeria First Policy’, says it will unlock Nation’s industrial potential
PETAN foresees success of 2024 oil bid round with PIA simplifying investment process
Dangote refinery to deliver petrol, diesel free to marketers, bulk buyers, cut logistics costs
Eko DisCo begins 5-year strategy to end estimated billing with 120,000 annual meter installations
NNPC Ltd. uncovers coordinated campaign to discredit new leadership, derail ongoing reforms

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.
[mc4wp_form]
By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
Share This Article
Facebook Copy Link Print
Share
Previous Article TCN warns of threats to Abuja facilities, urges vigilance in surrounding areas
Next Article EKEDC restates commitment to improved service delivery through infrastructural development
Leave a Comment Leave a Comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

- Advertisement -
Ad imageAd image

Latest News

In 100 days, renaissance boosts output to 200,000 bpd, delivers 1.9bcf gas to NLNG
Midstream News Oil & Gas Special Report Upstream
July 3, 2025
Nigeria’s active oil rigs rise to 44, over N326bn allocated to host communities
Energy Transition Impact News Oil & Gas Special Report Sustainability Upstream
July 3, 2025
Dr. Irune, OANDO MD calls for mindset shift, investment, collaboration to secure Nigeria’s energy future
Documentary Energy Transition Gas Green Finance Impact Local Content Midstream News Oil & Gas Sustainability Technology Transmission
July 2, 2025
NLNG CEO urges stakeholders to shift from rhetoric to performance for global competitiveness
Downstream Energy Transition Gas Impact Midstream News Sustainability Upstream
July 2, 2025
Follow US
© 2022 AdvisorsReports. All Rights Reserved.
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?