NMDPRA releases guidelines for gas demand requirement

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has released a new Domestic Gas Demand Requirement (DGDR) guideline for Liquefied Natural Gas (LNG).

A statement by the Authority Chief Executive (ACE) in Abuja, yesterday, explained that all the relevant stakeholders jointly determined the requirements.

According to the requirement, which was transmitted to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on Tuesday, gas to the power sector was pegged at 2.324 billion standard cubic feet per day (BSCF/D); the gas-based industries was fixed at 1.125 billion standard cubic feet per day; the commercial sector set at 1.034 billion standard cubic feet per day while the total Domestic Gas Demand Requirement was 4.482 billion standard cubic feet per day.

In the transmitted document, which had NMDPRA/GMR/DGSU/V.1/34 as reference number, the Authority Chief Executive said: “Domestic Gas Demand Requirement – Pursuant to Section 173 of the Petroleum Industry Act, 2021, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in consultation with the relevant stakeholders has determined the annual Domestic Gas Demand requirement (DGDR).

“The Determined Domestic Gas Demand requirement (DGDR) for the strategic sectors for the year 2022 as presented below is transmitted to Nigerian Upstream Petroleum Regulatory Commission for prescribing and allocating the Domestic gas Delivery Obligation among all lessees as stipulated in the Petroleum Industry Act (PIA) 2021.”

The Authority added that the stakeholders consulted include gas producing companies, gas transportation companies, gas offtakers and key regulators such as the NUPRC and Nigerian Electricity Regulatory Commission (NERC).

The Authority further explained that pursuant to Section 173 of the Petroleum Industry Act (PIA) 2021, the NMDPRA is obligated to determine the domestic gas demand requirement which shall be the total amount of marketable natural gas required for all wholesale customers of the strategic sectors.

Therefore, the document was the 2022 domestic gas demand requirement for the allocation of domestic gas delivery obligations among all lessees as prescribed by the PIA 2021.

Ahmed emphasised that the Authority is committed to ensuring gas availability for sustained economic development of Nigeria through power generation and Industrialisation.