FG Set To Release New Gas Pricing Template As IOCs Demand $1bn Legacy Debt Payment

The Nigerian Midstream and Downstream Regulatory Authority (NMDPRA) is set to release the new gas pricing template any moment from now.

The Authority Chief Executive Officer Engr. Farouk Ahmed announced this on Wednesday at the launch of the headquarters of “Decade of Gas,” in Abuja.

He said the decision to release the new gas pricing template was made after a review with the Adviser on Energy to President Bola Tinubu, Olu Verheijen,

He explained that the Authority has already engaged the relevant stakeholders like the Nigerian Electricity Regulatory Commission (NERC).

He added that NMDPRA has also consulted the commercial sector that have all aligned with the new pricing template.

He said, “We have been engaging with all the stakeholders in arriving at the domestic price for gas.

“Very soon after the review with the Adviser today (Wednesday), we want to release the new price for the sector.”

The decade of gas policy is expected to deliver 10 projects that would significantly impact the economy.

According to the plan, the Federal Government’s target is to attract $14 billion in foreign direct investment, raise $12 billion in revenue through royalties and taxes, and create two million jobs by 2030.

Meanwhile, International Oil Companies, have urged the Federal Government to prevail on power generation companies to repay the over $1bn gas legacy debts.

They said the payment for gas supplied to the power sector and commercial pricing of the product are necessary for the companies to produce more gas.

The Chairman/MD, Chevron, Mr. Richard Kennedy said the debts have to be paid to create confidence in the sector.

“The decade of gas is to ensure that we re-establish investors’ confidence in the industry. You do this by ensuring that all the legacy debts owed to the industry operators are paid and also ensuring that we have a cost reflective gas pricing”, he added.

In her speech, Verheijen, said the development of gas was a priority programme for the President Bola Tinubu administration.

ENDS