Nigeria’s Minister of State for Gas, Ekperikpe Ekpo has told attendees at the ongoing Gastech Conference in Singapore, that the country has the capacity to grow its gas production to over 5 billion cubic feet per day by 2030.
Reuters reports that Ekpo said this to attendees at the conference while stating that the country had access to funds needed to expand production, without revealing more details. He said:
“In Nigeria, it has been declared a decade of gas from 2020 to 2030. So, by 2030, we’ll get to 5.5 billion cubic feet of daily production (57 billion cubic meters a year).”
Questions arising from the Minister’s assertion
While Ekpo is clearly referring to gas production in the country, it remains ambiguous whether the 5.5 bcf figure includes gas that is reinjected, exported, or flared within the nation.
Furthermore, it is not evident if the production figure mentioned, exceeding 5.5 bcf, is solely designated for domestic consumption. This uncertainty arises from Ekpo’s mention of the ‘Decade of Gas Initiative,’ which primarily focuses on domestic usage.
Let’s look at the available data on Nigeria’s gas
Data from the Nigerian Liquefied Petroleum Gas Association (NLPGA) shows that Nigeria has a gas reserve of 209.5 trillion cubic feet, making it the world’s ninth-largest gas producer and Africa’s gas powerhouse.
Daily gas production stands at 7.8 billion cubic feet, but 2.2 billion cubic feet of gas are re-injected daily. Meanwhile, daily gas consumption averages 1.5 billion cubic feet, serving domestic and commercial applications.
However, the country exports 3.7 billion cubic feet daily to global destinations through the Nigeria Liquefied Natural Gas (NLNG) Limited and the West African Gas Pipeline (WAGP).
Also, when it comes to gas production, the June 2023 Statistical Review of World Energy report revealed that Nigeria’s natural gas production reached 40.4 billion cubic meters in 2022.
The country’s liquefied natural gas (LNG) exports also experienced a decrease, totalling 19.6 billion cubic meters in 2022.
Note also that the country struggles with gas supply issues. Energy markets analyst, Kelvin Emmanuel, told Nairametrics in a recent interview that the issue surrounding the gas supply problem is multi-faceted, stemming from various factors that have contributed to its persistence.
According to him, a primary concern lies in the reluctance of the Federal Government to deregulate gas prices, which has repercussions throughout the supply chain.
This has hindered the establishment of a competitive market environment and has impeded the efficient functioning of the gas sector.
Emmanuel also noted that another significant aspect of this challenge relates to the insufficient expansion of manifold infrastructure for the capture and aggregation of gas.
Source: nairametrics.com
