The Evolution of Gas Development and Utilization in Nigeria

Abstract

Nigeria is endowed with abundant natural gas resources, which in energy terms, is in excess of the nations’ proven crude oil reserve. Gas was discovered while searching for crude oil, as no deliberate effort was made to search for natural gas then. The reserved estimate of the Nigerian gas is over 120 trillion cubic feet, with about 50/50 distribution ratio between Associated Gas (AG) and Non Associated Gas (NAG). On an energy equivalent basis, Nigeria's natural gas reserve is three times her oil reserve. Nigeria's gas reserve estimated at 182 TCF (trillion cubic feet) with a projected growth rate of over 70% by 2023, has proven to possess the potential of being a key player in the emergent Global Natural Gas Market. A substantial portion of the gas produced is flared while a minute part is re-injected into the system and utilized. There is a subsisting Gas Master Plan to promote investment in pipeline infrastructure and new gas-fired ‘power plants’ to help reduce gas flaring and provide more gas. The gas master plan also seeks to eliminate the wasteful practice of gas flaring in the short term, but in any case make gas available at commercial and affordable prices to local markets as well as reflect its full economic value; allow for the widespread distribution of gas, LPGs, or even CNG to more remote areas, regionally and internationally; formulate a strategy that adds value for all parties and encourage beneficial gas usage both domestically and/or through capture and, where relevant, savings of foreign exchange. The PIA intends to harness the gas potential of the Country by encouraging investments in the gas space of the hydrocarbon sector. It is against this background that the paper evaluated the evolution of gas development and utilization in Nigeria with respect to the Nigerian Gas Master plan and the gas development and utilization measures. The authors therefore concluded that the proper exploitation and exploration of gas, barring any other odds, could be the game changer of the Nigerian economy.