Library / Natural Gas Pipeline Tariff Regulations Draft: June 10th, 2022 Objective 1. The objective of these Regulations is to establish the tariff methodologies and tariffs for

Natural Gas Pipeline Tariff Regulations Draft: June 10th, 2022 Objective 1. The objective of these Regulations is to establish the tariff methodologies and tariffs for

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1 
 
 
Natural Gas Pipeline Tariff Regulations 
 
Draft: June 10th, 2022 
 
 
Objective 
 
1.  The objective of these Regulations is to establish the tariff methodologies and tariffs for 
the transportation of natural gas by gas transportation pipelines and by gas transportation 
networks, pursuant to sections 32(c), 33(n), 113, 122, 123 and other provisions of the Act 
as well as for the review of tariffs related to gas transportation pipelines and gas 
transportation networks pursuant to section 124(2) of the Act.  
 
2.  The Authority may publish guidelines under these Regulations.   
 
 
General 
 
3.  The Authority shall – 
 
(a) 
determine tariff methodologies for the transportation and transmission of 
natural gas ; 
 
(b) 
provide pricing and tariff frameworks for natural gas in midstream and 
downstream gas operations; and 
 
(c) 
make regulations to establish tariffs for midstream and downstream 
petroleum operations. 
 
4.  The tariffs for the transportation of natural gas in gas transportation pipelines and gas 
transportation networks shall be based on the tariff principles pursuant to section 122(2) of 
the Act. 
 
5. Pursuant to Section 122 (3) of the Act, the Authority by these Regulations modifies the 
requirements of the tariff principles provided for in section 122(2) of the Act to follow the 
principles established in the Nigeria Gas Transportation Network Code Section B, Paragraph 
4 entitled “Transportation Charges” issued as of August 2020, in compliance with section 160 
of the Act. 
 
Overall tariff structure 
 
6.  (1). All shippers shall be charged a transportation tariff which shall consist of two parts: 
 
(a) 
A capacity charge, which shall be a charge for the  reserved capacity reserved 
by the shipper (the charge is payable by the shipper irrespective of whether, 
or to what extent, that reserved capacity is used); and  
 
(b) 
A commodity charge, which is a charge that varies in direct proportion to 
actual throughput of natural gas by the shipper.