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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(2) The transportation tariffs shall be determined and charged in US dollars or other foreign 
currency, and payment must be made, in respective foreign currency or its Naira equivalent 
at the open market rate published by the Central Bank of Nigeria  pursuant to section 
122(1)(d) of the Act 
 
 
Capacity Charge 
 
7.  (1) The Authority may approve different classes of capacity charge for the same gas 
transportation pipeline or gas transportation network.   
 
(2) Such classes of capacity charge shall be determined by different types and volumes of 
throughput agreements between the operators and shippers and with respect to gas 
transportation pipelines as to whether these pipelines are to be operated on an open access 
basis or for the own account of the licencee with third party access. 
. 
 
(3)  The classes of capacity charge under Regulation 7(2) may be determined – 
 
(a) 
with reference to gas transportation networks and gas transportation 
pipelines based on open access: 
 
(i) 
types and industries of individual end-users of the natural gas 
transported by shippers, based on the criteria approved by the 
Authority; 
 
(ii) 
importance of agreements with shippers facilitating the financing of a 
respective pipeline; and 
 
(iii) 
such other basis as may be approved by the Authority 
 
(b) 
with respect to gas transportation pipelines for the own account of the 
licencee: 
 
(i) a notional charge applicable to the licencee making its own priority use of 
the pipeline or charge applicable to the affiliate of the licencee using the 
line, provided that such notional charge shall be determined on an arms-
length basis by the licensee; and 
 
(ii) charge applicable to shippers using spare capacity in the pipeline; and 
 
(iii) such other basis as may be approved by the Authority.  
 
(4) For gas transportation networks and gas transportation pipelines based on open access, 
each class of capacity charge shall be charged in respect of respective reserved capacity under 
relevant gas transportation agreements. 
 
(5) For gas transportation pipelines for the own account of the licencee, the notional charge 
applicable to the licencee or actual charge to the affiliate shall be such that the allocation of 
charges between the licencee and third parties is acceptable.  The determination of a notional 
charge shall be required in view of the use of tariffs for the purpose of royalty and gas pricing 
calculations.  
 
8. (1) The capacity charge shall be determined and charged  based on a United States dollar 
or other foreign currency amount per unit of reserved capacity, per day and shall be payable 
in the respective foreign currency or its Naira equivalent at the open market rate published 
by the Central Bank of Nigeria .