Lagos — Despite Nigeria’s vast gas potential- 203 trillion cubic feet proven gas reserve, and a potential of 600 trillion cubic feet, it currently produces just 22 metric tons per annum with an output of 7294 million standard cubic feet per day.
A production of 22 metric tons per day amounts to just 0.5 percent output.
This is way too low when compared with contemporary gas countries with lesser gas potentials. For instance, Australia with 128 trillion cubic feet gas potential produces 85mtpa, Malaysia with 97TCF produces 29mtpa, while Indonesia with 103tcf has an output of 26mtpa.
A breakdown showed that out of the 7294mmscfd gas produced in Nigeria, just 1338mmscfd representing 19 percent is currently being utilised locally, according to a document on the country’s gas and power utilisation as at October 9, 2020 obtained by SweetcrudeReports.
More than what is currently being utilised in-country; a total of 3364mmscd is being exported as Natural Gas Liquids, NGL. The federal government and Chevron are also into an export deal through the Escravos Gas-To-Liquids, EGTL project. Chevron Nigeria Limited owns 75% share and the Nigeria National Petroleum Company NNPC owns 25%- this cumulates into 45 percent of gas produced being exported.
Re-injection as fuel consumes 2169mmscfd or 30 percent, while five percent or 381mmscfd is still being flared despite the commercialisation programme which targets end of 2020 to end the menace.
The power industry utilises just 690mmscfd to generate a meagre 3329MW per day (thermal, 2369MW, hydro; 960MW), with a peak generation of 5119MW, and an average of 4112MW as at October 9 2020.
Industries in Nigeria are currently unable to take in more than 515mmscfd, while a total of 90mmscfd is being sent out through the West African Gas Pipeline, WAGP.
To end gas flaring and stimulate in-country use, the federal government through the National Gas Policy, NGP is currently pushing for wide acceptance of the National Gas Expansion Programme, NGEP.
The NGEP is the FG’s flagship program conceived and designed to serve as a catalyst for adding value to the vast natural gas reserves Nigeria is endowed with. Its core mandate is to reinforce and expand gas supply as well as stimulate demand in the country through the effective and efficient mobilisation and utilisation of all available assets, resources and infrastructure in the country.
To accelerate the use of autogas and its variables (LNG, CNG) in-country, the federal government recently directed that all vehicles and generating sets be collocated to dual usage.
As a result, government has listed over 9000 stations for collocation of auto-gas nationwide by fourth quarter 2020 (9000 are non-NNPC stations while just 46 stations belong to the state-owned firm). There would be 600 NNPC lease and affiliate co-location by second quarter 2021.
The federal government said it targets one million vehicles to run on auto-gas by end of 2021.