Nigeria’s gas production level is set to hit 1,780 billion cubic feet (bcf) in 2022, up from 1,450 billion feet in 2021, a new report from African Energy Chamber (AEC) has shown.
The report noted that increased production will help Nigeria become a major player in gas supply to European countries.
Nigeria has over 200 trillion cubic feet of natural gas reserves, the biggest in Africa.
The report in its outlook noted that the existing production projects and the projects currently under development in Nigeria are expected to ensure a resilient supply through 2025.
“With this portfolio, Nigeria has an advantage for Europe to look up to the West African country as a potential supplier,” the report stated.
In addition, the report also indicated that the multi-billion 4,128km Trans-Saharan Natural Gas Pipeline being built by the governments of Nigeria, Niger and Algeria will enable the integration of Trans-Mediterranean, Maghreb-Europe, Medgaz, and Galsi Pipelines for Europe to leverage west and north Africa’s oil and gas resources to meet demand.
The AEC outlook also indicated that once completed, the pipeline will transport 30 billion cubic metres of natural gas per year, and Nigeria, as a leading producer in Africa, can produce a significant share of that capacity.
Nigeria’s current natural gas producing fields are expected to see a steep decline as we approach the mid-2020s, a worrying situation that can reduce the country’s production capacity, according to the report.
Hendrick Malan, the CEO of energy market research firm, Frost & Sullivan, in an exclusive interview with the AEC has said, “Nigeria is rich in oil and gas resources but still does not have adequate infrastructure such as a functioning refinery.
Malan added, “In order to utilize its oil and gas resources effectively, Nigeria needs to build more infrastructures locally to process its energy.
“To be able to build the infrastructure needed, there is a need for direct involvement from a combination of the private and public sector partners,” he said.