The Nigerian Mainstream And Downstream Petroleum Regulatory Authority (NMPDRa) has reaffirmed its dedication to boosting the Federal Government’s endeavors through the Presidential Compressed Natural Gas Initiative (PCNGI).
This initiative aims to oversee the management, financing, and development of domestic CNG vehicles within Nigeria’s transportation market.
In a letter dated April 20, 2024, addressed to the Programme Director/Chief Executive of the PCNGI, Mr. Farouk Ahmed, the Authority’s Chief Executive (ACE), emphasized their commitment.
Under this commitment, NMPDRA has granted Mobility Compressed Natural Gas a special status within the Gas to Commercial (GTC) framework.
This designation entitles it to the Gas Based Industry (GBI) pricing categorization for an initial period of 5 years, with the possibility of renewal for another 5 years, as per the provisions of the Petroleum Industry Act (PIA) 2021.
-Advertisement-
The statement, signed by Michael Oluwagbemi, Programme Director/Chief Executive, highlights that the PCNGI GBI pricing of $1.57/MMBtu significantly undercuts the ordinary rates of $2.42 and $2.92 for Power and Commercial buyers respectively.
READ ALSO: Dangote to meet marketers on pricing of petroleum products
According to the statement, “The Presidential Committee on Compressed Natural Gas led by Dr. Zacch Adedeji had initially requested for strategic gas allocation for Mobility focused Compressed Natural Gas projects, in a form of pricing concession. This milestone concession is a significant achievement of the PCNGI collaborative work with NMPDRA.
“This concession is expected to spur investors confidence and commercial activities in the nascent market while promoting government policy aspirantion for the sector.
“The PCNGI calls on all stakeholders in the sector to take full advantage of this concessionary pricing model for Mobility CNG, and recommit themselves to the future of a gas driven transportation sector that lowers food and energy inflation, while ensuring a cleaner, cheaper, safer and more reliable energy for powering the economy forward in line with the vision of President Bola Ahmed Tinubu.”
We do everything possible to supply quality news and information to all our valuable readers day in, day out and we are committed to keep doing this.
Your kind donation will help our continuous research efforts.
-Advertisement-
-Want to get the news as it breaks?-
