Library / Natural Gas Pipeline Tariff Regulations 2023
Natural Gas Pipeline Tariff Regulations 2023

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(b)  determination of a notional charge shall be required in view of the
use of tariffs for the purpose of royalty and gas pricing calculations.
(5)  The capacity charge shall be determined and charged based on a
United States Dollar or other foreign currency per unit of reserved capacity,
per day and payable in such foreign currency or its Naira equivalent at the
open market rate published by the Central Bank of Nigeria.
(6)  The capacity charge charged to a shipper shall be at the applicable
rate, multiplied by the number of units of reserved capacity reserved by the
shipper, multiplied by the number of days in the month, subject to downward
adjustment in the event of force majeure or default by an operator.
(7)  The capacity charge shall be determined by the reference tariffs
pursuant to the tariff methodology determined by the Authority.
(8)  The tariff methodology may adjust the reference tariffs into real
tariffs based on the interaction of the various classes of capacity charges.
(9)  The real tariffs referred to in subregulation (8) of this regulation
shall be determined for each calendar year and expressed in United States
Dollars of the base year of the cash flow used in the tariff methodology.
(10)  The actual capacity charge to be paid by the shippers shall be the
real tariffs adjusted for inflation.
(11)  The operator shall calculate the actual capacity charge to apply in
a calendar year and notify its shippers prior to 1st of December before the
next calendar year of the actual capacity charge.
(12)  The actual capacity charge shall be paid by shippers during the
calendar year in question, without adjustments.
(13)  The reference tariffs shall be a levelised charge, which shall be a
constant charge over the term approved by the Authority.
5.—(1)  The commodity charge shall be set to recover the cost of fuel
gas and related expenses.
(2)  A shipper shall pay commodity charge per unit of actual natural gas
transported on their behalf.
(3)  A shipper may in lieu of paying for fuel gas, provide a share of the
total quantity of fuel gas to the operator in proportion to the shipper throughput
of natural gas through the gas transportation pipeline or gas transportation
network.
(4)  The operator of a gas transportation pipeline on open access or gas
transportation network shall ensure that fuel gas is properly metered, accounted
for and sourced at free market rate in accordance with applicable regulations.
Tariff
relating to
commodity
charge.