THE DOMESTIC PRICE OF GAS IS $3.1(or400) naira per thousand standard cubic feet (msf)to industrial users.
For sale to the country’s power utility, PHCN, the price is $0.12 or (16 naira) from the state gas company NGC.
Either way, it is NGC (Nigerian Gas Company) that sells directly to the end user.
As part of the effort to develop the National Gas Master Plan, the Nigerian government approved gas pricing of $. 10 per thousand cubic feet (Mscf) for the producer and $0.3 0/Msf) for the transmitter for National Strategic Projects (Independent Power Plants, PHCN projects and Fertilsers). Now the plan is to aggregate all of this, so that a standard price will be adopted for the domestic gas market. In the aftermath of the enactment of the downstream gas act, the Nigerian Gas Company (NGC) will be unbundled into two entities Nigerian Gas Transportation Company (NGTC) and Nigerian Gas Marketing Company. Every gas producer will sell to the Nigerian Gas Marketing Company.
The Escravos to Warri North leg of the Escravos – Lagos Pipeline System (the nerve of the Nigerian domestic gas supply system) is down, taking out l70MMscf/d. That leaves roughly 430MMscf/d on the EPLS system This is the entire throughput of the EPLS, which supplies the 1, 200MW(capacity)Egbin Power Plant, the country’s largest, gas fired power plant, as well as Gaslink (50MMscf/d) which supplies to factories in the north of Lagos and Shell Nigeria Gas SNG (50mmscf/d) for sale to industries in the western flank of Lagos.
WAGP will transmit l40MMscf/d. This certainly requires an increase of 70MMscf/d each) from Shell and Chevron into the ELPS, when WAGP comes on stream in the second quarter of 2007..