NMDPRA Moves To Strengthen Nigeria’s Domestic Gas Market – Newsposl

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has commenced work on defining clear and measurable conditions for the transition of Nigeria’s domestic gas market towards greater commercial contracting under a willing-buyer, willing-seller framework…

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has commenced work on defining clear and measurable conditions for the transition of Nigeria’s domestic gas market towards greater commercial contracting under a willing-buyer, willing-seller framework.

Chief Executive of the Authority, Mallam Rabiu A. Umar, disclosed this at the Decade of Gas Market Maturity Workshop, where he said the process would be guided by indicators including gas supply, market participation, infrastructure access, contract performance, payment discipline, reliable market data and credible price signals.

Umar said Nigeria’s gas market had recorded growth in supply, utilisation and infrastructure investment, but continued to face challenges including supply constraints, limited infrastructure access, payment risks and weak contract performance.

He said, “The transition towards a more mature market will require clear and measurable conditions, guided by indicators such as gas supply, market participation, infrastructure access, contract performance, payment discipline, reliable market data and credible price signals.”

The NMDPRA chief stressed that achieving a mature gas market would require coordinated efforts among producers, buyers, infrastructure operators, financial institutions, government and regulators.

According to him, the objective is to create a market where investment responds confidently to demand, infrastructure supports efficient transactions and contracts command greater credibility.

He added that regulatory intervention would gradually reduce as the market develops and becomes increasingly capable of supporting commercial transactions.

The workshop forms part of efforts to deepen Nigeria’s domestic gas market and create conditions that can encourage investment, improve market efficiency and strengthen confidence among industry participants.…Read more by Colins Dubem