The Nigerian Midstream and Downstream Petroleum Regulatory Authority has slashed the price of natural gas for power generation companies.
This is coming amid about N2tn debt owed to gas companies by the power generation companies as a result of illiquidity.
GenCos are now expected to pay $2.13 per million British thermal units, according to a document released by the NMDPRA. The PUNCH recalled that in March 2024, the regulator introduced a revised pricing structure for natural gas in strategic sectors, resulting in an 11 per cent increase in power sector prices.
The Domestic Base Price for the power sector increased from $2.18 to $2.42 per MMBTU, while commercial sector pricing was adjusted to $2.92 per MMBTU.
However, in the document titled ‘Announcement on Establishment of The Year 2025 Domestic Base Price and Applicable Wholesale Price of Natural Gas for the Strategic Sectors’, the NMDPRA said natural gas will now be sold at the rate of $2.13 per MMBTU. The new pricing framework took effect from April 1, the NMDPRA disclosed.
