Natural gas in Nigeria

Nigeria holds huge natural gas proven reserves estimated at nearly 180.000 billion cubic feet (180 TCF= 5200 billion cubic meters). Associated gases (gas extracted with oil as it is produced) account for 110 TCF of the overall volume whereas non-associated gases (that is gas produced alone) account for 70 TCF of the proven reserves overall volume.

Currently, Nigeria produces about 70 billion cubic meters of gas annually. Yet, large quantities of gas are flared into the atmosphere. Gas flaring represents a major economic loss and a significant shortfall in earnings to the Nigerian economy but is also the cause of environmental damage. To remedy this situation, the Nigerian Government launched an ambitious programme of valorisation and monetisation of gas resources in order to reduce the pollution effects.

Two potential markets are opening up for the Nigerian economy: on the one hand, the domestic market with power generation, the cement industry, the steel industry, petrochemistry and the aluminium foundries; on the other hand, and on a larger scale, the export market represents the most promising outlet for the Nigerian gas. LNG projects such as Brass LNG, OK LNG, the West Africa Gas Project or the TSGP are under progress and will boost Nigerian exports to the global markets.