Nigeria's domestic gas supply has crossed 2 billion cubic feet per day, according to the country's gas minister, Ekperikpe Ekpo. This development is part of the government's efforts to expand supplies to power plants and industries, reducing constraints on economic growth. The increase in gas supply is a significant milestone for Nigeria, which has been working to boost its gas production and meet growing demand from various sectors.
Gas production in Nigeria rose to 7.5 billion cubic feet per day from about 6.8 billion cubic feet per day in 2023, Ekpo said. The country's proven gas reserves have also increased to 215.19 trillion cubic feet from 208.83 trillion cubic feet. These numbers indicate a positive trend in Nigeria's gas sector, which is expected to play a crucial role in the country's economic development.
Nigeria is targeting gas production of 10 billion cubic feet per day by 2027 and 12 billion cubic feet per day by 2030. To achieve these targets, the government is investing in infrastructure development, including pipelines and other facilities. The Obiafu-Obrikom-Oben pipeline has reached full completion and is being prepared for first gas, with a capacity to transport 2 billion cubic feet per day.
The Obiafu-Obrikom-Oben pipeline is expected to unlock more than 500 million standard cubic feet per day of additional gas for the domestic market. Another pipeline, the Ajaokuta-Kaduna-Kano pipeline, is about 95% complete. These infrastructure developments are critical to increasing gas supply and meeting growing demand from various sectors.
The Nigerian government has deployed 671 billion naira, approximately $434 million, through the Midstream and Downstream Gas Infrastructure Fund. This investment has attracted about 1.6 trillion naira in private investment across 31 projects and 205 infrastructure assets. These projects are expected to deliver about 475 million standard cubic feet per day to the domestic market when fully operational.
The gas sector investment is expected to reach about $30 billion by 2030. Nigeria's gas sector has the potential to drive economic growth and development, and the government is working to create an enabling environment for investment. The increase in gas supply and investment in infrastructure are critical to achieving this goal.
The growth of Nigeria's gas sector is expected to have a positive impact on the country's economy and industries. With a stable and reliable gas supply, power plants and industries can operate more efficiently, driving economic growth and development. The government's efforts to increase gas production and investment in infrastructure are crucial to achieving this goal.
Key points
- Nigeria's domestic gas supply has exceeded 2 billion cubic feet per day.
- The government aims to increase gas production to 10 billion cubic feet per day by 2027 and 12 billion cubic feet per day by 2030.
- The gas sector investment is expected to reach about $30 billion by 2030.
