The arm of Nigerian National Petroleum Corporation Limited in charge of downstream and midstream regulations also known as The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has recently unveiled four fresh new regulations. These new regulations are believed to straighten the Nigerian petroleum sector especially the midstream and downstream sectors in accordance with the guidelines establishing the Petroleum Industry Act, 2021 (PIA).
In a recent press statement released by the agency through its general manager, corporate communications by Kimchi Apollo, they stated the utmost importance of these regulations which are now sixteen (16) in number is to direct the positive paths of the Petroleum Industry Act, 2021 (PIA) to a purposeful destination in line with original plan of its establishment.
According to the agency release the four new regulations dwelt on environmental and safety of energy businesses in the Nigerian oil and gas sector. These regulations are as follows: Midstream and Downstream Petroleum Environmental Regulations 2023, Midstream and Downstream Petroleum Safety Regulations 2023, Midstream and Downstream Environmental Remediation Fund Regulations 2023, Midstream and Downstream Decommissioning and Abandonment Regulations 2023.
The need for Midstream and Downstream Petroleum Environmental Regulation 2023 is to design and ensure that environmental standards and practices are established across midstream and downstream petroleum operations, while the Midstream and Downstream Petroleum Safety Regulation 2023 is to highlight the importance of safety measures and procedures. The Midstream and Downstream Decommissioning and Abandonment Regulation 2023 underlines the requirements and procedures for the decommissioning and abandonment of petroleum facilities and finally the Midstream and Downstream Environmental Remediation Fund Regulation 2023 showcasing the establishment and financial contribution of the Fund for operations.
Among Other sixteen regulations established so far by the agency with special emphasis on gas utilization and monetization are; Gas Distribution Systems Regulations 2023, Gas Trading and Settlement Regulations 2023, Midstream Gas Flare Regulations 2023, Gas Pricing and Domestic Demand Regulations, Natural Gas Pipeline Tariff Regulations.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (Otherwise known as “The Authority”) was created in August 2021 in line with the Petroleum Industry Act 2021 which provides legal, governance, regulatory and fiscal framework for the Nigerian Petroleum Industry as well as development of Host Communities.
