06 September 2017, Sweetcrude, Lagos — Domestic demand for natural gas is growing specifically to meet electricity demand in Nigeria, experts have said.
According to a study conducted on Nigeria’s developing local gas market by the Centre for Petroleum, Energy Economics & Law, University of Ibadan, the demand for natural gas is steadily growing, and will soon overtake that of oil hence, should be taken seriously.
Experts have in recent times, argued for the development of natural gas in the world with the phrase “gas is the new oil”.
According to the university, the world is gradually moving to the end of the oil age, as exemplified in international oil companies like Shell and Chevron, making major buys into the natural gas business.
The study argued that natural gas is the fuel of choice for power generation in part because of its lower carbon intensity compared to coal and oil.
According to the study, the government should invest in the liquefaction technology, saying that it will make natural gas available throughout the country.
It then allayed government’s fear of having to commit fresh huge sums into developing natural gas, saying Nigeria already has in place the essential elements for the rapid growth of the gas market.
The study then made a forecast saying it sees the emergence of a regional gas pricing hub as the physical and virtual transportation and distribution networks grow.