A Review of the Nigerian Energy Industry

‎Nigerian domestic gas demand set to hit 10bcf/day by 2020 – NNPC

Gas pipeline
Gas pipeline

Oscarline Onwuemenyi

18 February 2015, Sweetcrude, Abuja –
The Nigerian National Petroleum Corporation, NNPC, has disclosed that the country’s domestic gas demand is expected to rise to over 10 bcf/day by 2020 from a little above 2 bcf/d now.

The Group Managing Director of NNPC, Dr. Joseph Dawha, who disclosed this in a statement made available to our correspondent in Abuja, regretted that sabotage attacks on gas pipelines, however, pose a major threat to meeting the demand target.

According to Dawha, the rising demand from the power sector and industry is fueling growth in the domestic sector, with demand set to hit over 5 bcf/d in 2017, before rising to 10 Bcf/d by 2020.

“The federal government and the NNPC have embarked on a very aggressive implementation of the gas master plan to meet the astronomical increase in gas demand,” he said.

He added that, “Over 500 km of pipelines have been laid and many more kilometres planned in the next two to three years.”

Nigeria has proven gas reserves of about 180 trillion cf, the world’s ninth biggest, but Africa’s biggest energy producer continues to burn about 20% of the gas produced, mainly along with crude oil due to the limited domestic market outlets.

The Federal government last November signed an agreement with eight oil companies, including ExxonMobil, Shell and Seplat for the supply of natural gas to 10 power plants in the country, built to tackle chronic energy supply.

At less than 4000MW, the country’s electricity output is still a far cry from the national demand level, put at around 15,000MW.

Meanwhile, attacks on key gas pipelines in the restive Niger Delta area have cut supplies to power plants by 1.1 bcf/d, the statement added.

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