Abstract
The study reviewed the gas production and utilization in Nigeria and outlines strategies for long term development. There is weak gas resource management system in Nigerian that has resulted to gas production being at 8.0bscf/d with utilization of 39% (2.9 bscf/d) on NLNG, 31% (2.3 bscf/d) on reinjection and other operational usage, 15% (1.1 bscf/d) on gas flaring and 16% (1.2bscf/d) on domestic gas consumption. The study shows a 41% daily average domestic gas supply obligation performance. Extensive review of related literatures was used to obtain relevant data and information on gas production and utilization in Nigeria. The study revealed inconsistencies and low gas production and utilization in Nigeria with respect to the Nigerian Gas Master plan that was not fully implemented, relatively low gas flare penalty and insufficient domestic gas utilization projects. The compressed natural gas utilization in Nigeria has only been used in Benin-City for cars, Nestle Shagamu factory and Power gas Africa. The proposed strategy for the long-term gas production and utilization in Nigeria includes sustainable management structure, sustainable governance and regulatory structure and sustainable financing structure.
Highlights
There has never been a deliberate attempt to exploit the gas resource as a means to boost the Nigerian economy or means for sustainable economic development since the discovery of crude oil in 1956 at Oloibiri in the present Bayelsa State and a significant proportion of the Nigeria’s gas was discovered accidentally during exploration for oil (National Gas Policy, 2017), while According to BP Statistics (2017), Nigeria ranks 23rd position in the global gas production and with the biggest share of production coming from Associated Gas (AG) and there has been little or no concerted effort to develop the Non-Associated Gas (NAG) fields in Nigeria
According to Ugbo (2013), it is envisaged that the Nigeria gas proven reserves will increase gradually to 250 trillion cubic feet by year 2020 and the primary natural gas resource development strategies is centered on reducing the cost of extracting unconventional gas and building integrated chain for commercializing stranded gas resources that are far from market through liquefied natural gas (LNG) and gas to liquid (GTL) technologies as well as through long distance pipelines
The Nigerian Gas Company Limited (NGC) was formed in 1988, as one of the eleven (11) entities of the Nigerian National Petroleum Corporation (NNPC) with the objective to develop an effective gas sector in Nigeria that would support the industrial sector through an integrated gas pipeline network and export natural gas to the neighboring countries (West African Subregion).(http://ngc.nnpcgroup.com/)
Summary
There has never been a deliberate attempt to exploit the gas resource as a means to boost the Nigerian economy or means for sustainable economic development since the discovery of crude oil in 1956 at Oloibiri in the present Bayelsa State and a significant proportion of the Nigeria’s gas was discovered accidentally during exploration for oil (National Gas Policy, 2017), while According to BP Statistics (2017), Nigeria ranks 23rd position in the global gas production and with the biggest share of production coming from Associated Gas (AG) and there has been little or no concerted effort to develop the Non-Associated Gas (NAG) fields in Nigeria. There is increasing utilization of gas in Nigeria for power generation, fertilizer, petrochemical and manufacturing; But there is lack in the gas feedstock for a number of industries, with inefficiency in gas resource management and Okafor (2016), posits that the pace at which gas resource and its associated infrastructure are developed in Nigeria is unimpressively slow and Odunuga (2016), stated that Nigeria has about 400 trillion cubic feet (tcf) to 600 trillion cubic feet (tcf) of natural gas that is yet to be discovered, which is about 7.7 percent to 11.5 percent of the total global quantity of natural gas that is yet to be discovered and this is a huge economic gain with respect to economic development in Nigeria through gas based industrialization; the gap therein is the lack of gas resource management plan for structured economic development
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