Nigeria’s gas sector is on the cusp of significant growth, driven by increased domestic consumption, export potential, and strategic partnerships, reports the Nigerian National Petroleum Corporation (NNPC).
The West African nation boasts 208.62 trillion cubic feet (tcf) of proven gas reserves, with an additional 600 (tcf) potential reserves. Domestic gas consumption stands at 1.2 billion standard cubic feet per day (bscf/d), with plans to increase this to 5 bscf/d by 2025.
Nigeria’s gas sector has immense potential for economic growth and development, according to Energy Analyst, Dr. Adeola Adenikinju. The sector is expected to play a crucial role in powering Nigeria’s economy, with gas utilisation planned for power generation, industrial development, transportation, cooking, and heating.
The Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline Project, valued at $2.8 billion, and the Obiafu-Obrikom-Odukpani (OB3) Gas Pipeline Project, worth $1.5 billion, are key domestic gas projects underway. The Nigerian Gas Masterplan, a $10 billion initiative, aims to develop Nigeria’s gas infrastructure.
The Nigerian Liquefied Natural Gas (NLNG) Train 7 project, valued at $10 billion, will increase LNG production capacity by 35%. Potential exports to Europe, Asia, and Africa are also on the horizon. Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, emphasized, “Gas export remains a vital component of Nigeria’s economy.”
Recent partnerships include a $2.8 billion agreement with NNPC, Shell, Total, and Eni for the development of the Assa North/Ohaji South gas project, as well as a Memorandum of Understanding (MoU) with Gazprom for gas development and infrastructure. Partnerships with Samsung, Hyundai, and Daewoo for gas infrastructure development are also in place.
NNPC’s Group Managing Director, Mele Kyari, noted, “International partnerships will enhance Nigeria’s gas sector competitiveness.” Kyari added that the NNPC is committed to harnessing Nigeria’s gas resources for economic growth.
Despite growth prospects, Nigeria’s gas sector faces challenges, including infrastructure deficits, security concerns, regulatory frameworks, and funding constraints. To address these challenges, the Nigerian government plans to increase investment in gas infrastructure, enhance security measures, implement regulatory reforms, and establish public-private partnerships.
Nigeria’s gas sector is expected to increase domestic gas consumption by 300% by 2025, boost LNG production capacity by 35% by 2026, and attract $10 billion in foreign investment by 2027.