Nigeria’s Domestic Gas Supply Grew by 14% in 12 Months, Says NMDPRA
- NUPRC assures 12.2 billion SCF per day by 2030
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) yesterday said that the performance of Nigeria’s domestic gas supply obligation grew to 64.8 per cent between September 2021 and the same period in 2022 compared to 50.66 per cent achieved in 2020, a 14 per cent increment.
The Authority’s Chief Executive, Mr Farouk Ahmed, addressed the public at the 2023 Domestic Gas Demand Requirements (DGDR) workshop and made it known that the 2022 gas demand requirement also increased by 5.9 per cent per day over the determined 2021 national gas requirement.
He added that, despite the improved performance of 2021, the domestic gas market continues to face serious challenges around infrastructural constraints, payment assurance problems and long outstanding debts of gas supplied to the power sector.
He listed other constraints as the poor performance of genuine contracts, constraints on the distribution of generated power and low investment from capable hands into the sector.
Ahmed assured that necessary parameters had been put in place to ensure that this year’s domestic gas demand requirements are coordinated productively and efficiently.
He stated that; “As at the end of September 2021, the estimated performance of the domestic gas supply obligation was 64.8 per cent compared to 50.66 per cent achieved in 2020 (comparing annual total domestic supply obligation allocation to actual daily supply met).
“ The increased performance of 14 per cent in the preceding domestic gas year can be majorly attributed to the concerted efforts implemented by the regulator and all our stakeholders towards enhancing the performance of the market,”.
He explained that in determining a realistic gas demand requirement for the establishment of the domestic gas supply obligation, the regulator had always conducted an industry-wide domestic gas market review workshop.
According to him, this offers stakeholders in the sector an opportunity to look into the demand levels of natural gas in the domestic market; establish the necessary hands required for enhancing the performance of the market and ensuring the collaboration of all the key participators in the critical segment of Nigeria’s economy.
Ahmed expressed the NMDPRA’s responsive commitment to ensuring that regulation is optimised across the gas value chain to enhance the market environment that accommodates all the players in the sector.
Jenni’s Anyanwu the Manager, Gas Production and Flare Monitoring at the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), expressed positivity that Nigeria can meet the 12.2 billion SCF of gas per day as mentioned in the Nigerian ‘Decade of Gas’.
“A notable hope is the Nigerian Gas Flare Commercialisation Programme (NGFCP) re-launched in September 2022, which would see currently flared gas converted to useful products, thereby making more gas available for local utilisation.
“There are many other upcoming projects that are aimed at increasing the current gas supply and the PIA is gas-friendly legislation that is a huge enabler in this regard.
“Currently, Nigeria produces around between 7 and 8 billion SCF per day but with the capacity to increase that production to 12.2 billion, which is the target of the decade of gas if the current momentum by the government continues in the next few years,” he explained
He also said that the 14 per cent growth is a result of the regulatory effort in ensuring compliance with distribution and timely monitoring of gas producers’ performance.
He added: “We do not wait until the end of the year. Even though these reports are received daily to determine compliance level. The companies themselves are aware that gas is the transition fuel for Nigeria. So, it makes sense even for their corporate image to comply with initiatives like this.”
Anyanwu noted that gas flaring has been a challenge but finding uses for flared gas has become imperative as the Petroleum Industry Act (PIA) has made some provisions for disciplinary measures for gas flaring.
He went further to state that:
“Most of the gas that was being flared now comes to the domestic market and that is part of what is driving the numbers. Many companies have completed their flare-out projects within the past two years under review.
“The Nigerian gas flare commercialisation programme 2022 which was re-launched on September 30th this year has been a major push as well. This programme ensures an increase in the supply of gas to the domestic market.,”