The Nigerian Mainstream and Downstream Petroleum Regulatory Authority (NMPDRA) has fixed a price of $1.57MMBtu for compressed Natural Gas (CNG).
This was disclosed in a statement by the Programme Director/Chief Executive Officer, Presidential Compressed Natural Gas initiative (PCNGi) Michael Oluwagbemi.
He said the NMPDRA has set CNG for various forms of transportation as a special status and would serve as a subset of gas-to-commercial purposes, which entitles it to the categorisation of Gas Based Industries (GBI).
It further noted that the pricing categorisation of CNG as a GBI would last for five years subject to renewal under the Petroleum Industries Act (PIA) 2021.
Oluwagbemi said the GBI pricing of $1.57/MMBtu is set much lower than ordinary $2.42 and $2.92 for Power and Commercial buyers respectively, pointing out that the decision was following a request from the PCNGi, led by Dr. Zaach Adedeji, who asked for a strategic gas allocation for mobility focused CNG projects in the form of pricing concession.
