By Adewale Sanyaolu
The Federal Government has disclosed its intention to increase its gas production to more than five billion cubic feet (bcf) per day.
According to the Minister of State for Petroleum(Gas), Ekperikpe Ekpo, the plan would see the country utilise its sufficient gas reserves which the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) put at 208.83 trillion cubic feet of gas which represents 33 percent of Africa’s total gas reserves of 620 TCF.
Speaking at the Gastech conference in Singapore, Ekpo said: “Nigeria has been declared a decade of gas from 2020 to 2030. So by 2030, we’ll get to 5.5 billion cubic feet of daily production (57 billion cubic meters a year),” adding that there were funds available to finance expansion, without elaborating.
Nigeria’s gas output declined by nearly 11 per cent from the previous year to 40.4 bcm in 2022, down from over 49 bcm a year in 2019 and 2020, according to industry body, the Energy Institute.
The decline in output resulted in lower exports of liquefied natural gas (LNG), which dropped by 16 per cent to 19.6 bcm last year, the institute’s data showed, giving Nigeria less than a four per cent share in global LNG exports. Ekpo had last week during his maiden meeting with staff of the ministry pledged to increase investment in the gas-to-power sector value chain for improved access to electricity across the country.
He added that the ministry would work towards attracting investments into the gas sector to unlock its full potential for national development. He said his vision was to grow gas supply to thermal plants so as to improve electricity generation to consumers in the country. The minister lamented that of the 20 top gas producing nations in the world, utilisation was least in Nigeria, hence the need for increased investments in the industry.
He also assured of greater investments in Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) infrastructure to deepen penetration among Nigerians. He said the gas sector held great prospects for the resuscitation of the economy and tasked workers on the need for commitment and dedication to meeting the expectations of Nigerians from the gas industry.
“Today, we talk about insecurity, unemployment and even food security, but I believe that this ministry is critical to the growth of our economy. We need to grow gas supplies to our power plants so that there is improved electricity generation and supply to assist in job creation for our youths.”
Ekpo assured existing and prospective investors of a conducive environment to do business in the gas industry.