The Petroleum Industry Act of 2021 (PIA) establishes the Domestic Gas Delivery Obligation (DGDO) for Upstream Lessees. This initiative aims to ensure a reliable supply of natural gas to meet the demands of wholesale customers in key sectors. To support the implementation of the DGDO, the Nigerian Upstream Petroleum Regulatory Commission introduced the Domestic Gas Delivery Obligation Regulation in 2022.
Together, the provisions outlined in the PIA and the accompanying Regulations are designed to guarantee that natural gas, whether used as feedstock or as a power source, is accessible to stakeholders in the power, commercial, and gas-based industries at competitive prices.
In this blog post, we will discuss the mechanism for the allocation of the DGDO, the methods by which the obligation can be fulfilled, and the annual process for determining the domestic gas supply price.
