By Jemimah Wellington, JKNewsMedia Correspondent
NATURAL GAS price for power generation companies has been increased to $2.18 per metric million British thermal units from the previous $2.13 per MMBTU, according to a circular issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
JKNewsMedia.com reports that the authority announced the new domestic base price and wholesale prices of natural gas for 2025, stating that the adjustment will take effect on April 1, 2026.
The domestic base price represents the minimum rate at which natural gas can be sold in the domestic market.
“Accordingly, taking into cognizance the provisions of the Petroleum Industry Act (PIA), market realities, as well as the gazetted Gas Pricing and Domestic Demand Regulations (GPDDR), the NMDPRA hereby establishes the new Domestic Base Price (DBP) as USD 2.18 per MMBtu and wholesale prices of natural gas in the strategic sector, effective 1st April, 2026,” the circular reads.
In the circular signed by Saidu Mohammed, chief executive officer of the authority, commercial users are to purchase natural gas at $2.68 per MMBTU, up from $2.63 per MMBTU.
The agency also fixed prices for gas-based industries including ammonia, urea, methanol, and low Sulphur diesel at a floor price of $0.9 per MMBTU and a ceiling price of $2.18 per MMBTU.
The authority stated that the domestic base price at the marketable gas delivery point, under section 167(1) of the PIA, will be determined in line with regulations incorporating key guiding principles.
“a) The price must be of a level to bring forward sufficient natural gas supplies for the domestic market on a voluntary basis by the upstream producers,” it stated.
“b) 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.
“c) Lowest cost of gas supply based on three tier cost of supply framework.
“d) Market related prices tied to International Benchmarks.”
