Connect with us

Energy

Shettima Decries Nigeria’s Suboptimal Gas Earning

Published

on

Who is Senator Kashim Shetima, Tinubu's running mate

Comparatively, Nigeria’s $5 billion earning from gas is suboptimal.

This is the view of Vice President, Sen Kashim Shettima, who mirrored Nigeria against another African country, Egypt, on Thursday at the 6th Valuechain Annual Lecture and Awards in Abuja.

Decrying the situation, the Vice President pointed out that Egypt had 30 percent lower gas reserves in comparison with Nigeria, yet earns more from the natural resource than Nigeria.

According to him, Nigeria ranks 9th globally in terms of proven reserves, with over 200 trillion cubic feet of untapped gas resources.

Sen Shettima maintained that the import of truly exploiting the nation’s gas reserves could not be over-stated, as gas was critical to the nation’s power supply, not only accounting for 80 percent of power generation today, but expected to be the dominant power generation source by the end of this decade.

The Vice President, represented by the Special Adviser to the President on Energy and Power Infrastructure, Office of the Vice President, Sodiq Wanka, said, “Today, Nigeria earns around $5bn from gas production, a figure that is 40 per cent less than in Egypt, which has around 30 per cent of Nigeria’s reserves.

“Our production to reserve ratio is less than a third of Egypt’s, less than a quarter of Algeria’s and around 10 per cent of Malaysia’s.

“In the aftermath of the Russia-Ukraine war, the EU and many other nations were shopping for Liquefied Natural Gas at the same time that Nigeria’s largest LNG assets were operating significantly below capacity because gas supply was inadequate.

“At this rate, according to decade of gas analysis, we could have a demand-supply gap of up to 10bscfd (billion standard cubic feet per day) of gas by 2030.”

He observed that the theme of the event around midstream gas infrastructure was timely, as the importance of critical gas transport infrastructure, processing facilities and other midstream infrastructure could not be overstated.

“One only needs to look at the number of power plants and factories that have built up around the Escravos-Lagos-Pipeline System and its various spurs.

Today, I am glad to learn that the AKK pipeline is nearing completion,” he said.

10 Comments
0 0 votes
Article Rating
Subscribe
Notify of
10 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
tlover tonet
8 months ago

You have brought up a very superb points, thanks for the post.

Ελαιοχρωματιστές Ίλιον

I do agree with all the ideas you’ve presented in your post. They are very convincing and will definitely work. Still, the posts are very short for starters. Could you please extend them a bit from next time? Thanks for the post.

the brain song review
6 months ago

Wonderful website. Lots of helpful information here. I am sending it to some pals ans also sharing in delicious. And of course, thanks for your sweat!

neuro energizer reviews

There are some interesting points in time on this article but I don’t know if I see all of them center to heart. There’s some validity but I will take hold opinion till I look into it further. Good article , thanks and we would like more! Added to FeedBurner as effectively

gelatin trick
6 months ago

At this time it sounds like Movable Type is the best blogging platform available right now. (from what I’ve read) Is that what you’re using on your blog?

gelatin trick
5 months ago

What¦s Happening i am new to this, I stumbled upon this I have found It positively useful and it has helped me out loads. I am hoping to contribute & assist other users like its aided me. Great job.

Gelatin Trick Recipe
5 months ago

you have a great blog here! would you like to make some invite posts on my blog?

fdertolmrtokev
5 months ago

Hi, Neat post. There is a problem with your site in internet explorer, would test this… IE still is the market leader and a big portion of people will miss your excellent writing because of this problem.

Hemp-derived products
5 months ago

Generally I don’t learn post on blogs, but I would like to say that this write-up very compelled me to check out and do it! Your writing style has been surprised me. Thank you, very great article.

zaborna torilon
4 months ago

Fantastic beat ! I would like to apprentice at the same time as you amend your site, how can i subscribe for a weblog site? The account helped me a appropriate deal. I were tiny bit familiar of this your broadcast provided brilliant clear concept

Energy

Nigeria’s Q1 Gas Production Increases to 687bscf, Flaring Drops 8%

Published

on

Data released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) shows that Nigeria’s gas production rose by about 3 percent in the first quarter of 2026, while gas flaring declined by over 8 percent year-on-year.

An analysis of the commission’s gas production status reports for the first three months of 2025 and 2026 revealed that total gas output increased from 667.27 Billion Standard Cubic Feet (BSCF) in Q1 2025 to 687.09 billion scf in Q1 2026.

The increase of approximately 19.81 billion standard cubic feet represented a year-on-year growth of about 2.97 percent, highlighting continued slow but steady expansion in Nigeria’s gas sector amid the federal government’s push to deepen gas utilisation and monetisation.

In addition, the NUPRC figures had it that January 2026 gas production stood at 233.96 billion scf, compared to 236.32 billion scf in January 2025.

However, production rebounded strongly in the subsequent months, with February 2026 output rising to 212.62 billion scf from 199.68 billion scf in February 2025.

In the same vein, March 2026 production climbed to 240.51 billion scf, compared to 231.28 billion scf recorded in March 2025, making it the highest monthly production level in the period under review.

ALSO READ:

At the same time, the data showed marked improvement in gas flare management. Total gas flared in Q1 2025 stood at 50.95 billion scf, compared to 46.83 billion scf in Q1 2026. The reduction of about 4.12 billion scf translated to a decline of roughly 8.1 percent year-on-year.

Similarly, average flare intensity improved significantly during the period. The average gas flare rate dropped from about 7.65 percent in Q1 2025 to approximately 6.81 percent in Q1 2026, indicating that a larger proportion of produced gas was captured for productive use rather than burnt off.

In the same vein, monthly flare rates for Q1 2025 were 7.92 percent in January, 7.94 per cent in February and 7.08 percent in March. For Q1 2026, the flare rates declined to 7.34 percent in January, 6.62 percent in February and 6.48 percent in March.

The data also revealed a significant shift in the structure of Nigeria’s gas production. Associated gas production, which is gas produced alongside crude oil, declined during the review period.

Total associated gas output fell from 370.28 billion standard cubic feet in Q1 2025 to 332.82 billion standard cubic feet in Q1 2026. In contrast, non-associated gas production recorded substantial growth.

Non-associated gas output increased from 296.99 billion standard cubic feet in Q1 2025 to 354.17 billion standard cubic feet in Q1 2026, suggesting increased contribution from standalone gas projects and dedicated gas developments, rather than reliance on oil-linked gas production.

Also, export gas sales recorded one of the strongest improvements during the quarter. The NUPRC data showed that export gas sales rose from 223.99 billion standard cubic feet in Q1 2025 to 292.87 billion standard cubic feet in Q1 2026.

This represented an increase of about 68.89 billion standard cubic feet or approximately 30.75 percent year-on-year. Findings show that the increase was likely driven by stronger Liquefied Natural Gas (LNG) export performance and improved international demand for Nigerian gas supplies.

However, domestic gas sales weakened slightly during the same period. Domestic sales declined from 186.98 billion standard cubic feet in Q1 2025 to 171.15 billion standard cubic feet in Q1 2026, representing a drop of roughly 8.5 percent.

This raised concerns regarding the adequacy of gas supply to Nigeria’s domestic market, especially for power generation and industrial use. Despite the decline in domestic sales, gas utilisation efficiency improved marginally due to lower flare volumes.

The improved flare metrics suggested that operators were more efficient in capturing and commercialising produced gas. According to the data, total utilised gas stood at 639.91 billion scf in Q1 2025 and 639.68 billion scf in Q1 2026, indicating relatively stable utilisation volumes despite higher production.

With proven gas reserves estimated at about 215.19 trillion cubic feet (TCF), Nigeria has in recent years increasingly prioritised natural gas as a transition fuel capable of supporting domestic energy needs, industrial growth, petrochemical expansion and export earnings.

The federal government has also intensified efforts to reduce routine gas flaring through stricter regulatory enforcement and commercialisation initiatives targeted at flare gas recovery, especially through the Nigerian Gas Flare Commercialisation Programme (NGFCP).

Continue Reading

Energy

Renewed US-Iran Tensions Drag Oil Price Northwards

Published

on

After the United States carried out what it described as defensive strikes in southern Iran, which put fresh question marks over the fragile ceasefire and ongoing peace talks between Washington and Tehran, oil prices spiralled on Tuesday.

The world is taken aback because the strikes came in the midst of hopes that both countries were nearing an agreement to end the three-month war and reopen the Strait of Hormuz for the free movement of oil shipments.

Consequently, from about $97 per barrel on Monday, global benchmark Brent crude futures rose by roughly 3.5 percent on Tuesday to around $100 per barrel.

According to reports, US forces struck missile-launch sites and other targets in southern Iran on Monday, even as the Donald Trump administration signalled that a peace agreement between the two sides could be close.

In a statement, the US Central Command said the attacks were defensive in nature. “US forces conducted self-defense strikes in southern Iran today to protect our troops from threats posed by Iranian forces. Targets included missile launch sites and Iranian boats attempting to emplace mines,” CENTCOM spokesman Capt. Tim Hawkins said.

Reacting, Iran accused the United States of violating the ceasefire with the strikes. Iran’s Foreign Ministry said the attacks in the southern Hormozgan province, where Iranian media reported explosions early on Tuesday, amounted to a “gross violation” of the fragile ceasefire that has been in place for nearly seven weeks, according to Reuters.

ALSO READ: VDM in Trouble as Presidency Seeks Legal Action Over Alleged Fake Tinubu Audio

Both sides had earlier indicated progress on a memorandum of understanding that could halt the war and restore shipping activities through the Strait of Hormuz, while giving negotiators 60 days to address more contentious issues, including Iran’s nuclear programme.

Reports also indicated that Iranian negotiators had pushed for the proposed agreement to include the release of billions of dollars in frozen assets during talks held in Qatar.

The war, which began with US and Israeli strikes on Iran on February 28, has triggered a major oil supply shock, increasing the costs of fuel, fertiliser, and food globally. Iran had responded to the attacks by launching drones and missiles at Gulf states hosting US military bases.

Traffic through the Strait of Hormuz, which accounts for about one-fifth of global oil and liquefied natural gas trade, has remained significantly below normal levels since the conflict began.

Although diplomatic efforts are continuing, there are growing fears that the latest US strikes could further escalate tensions in the Middle East and disrupt global energy supplies.

Continue Reading

Energy

At 92% Completion, NLNG Train 7 Nears Pre-commissioning Phase

Published

on

The seventh gas liquefaction train of the Nigeria Liquefied Natural Gas (NLNG) Limited is on the verge of completion, having reached 92 percent of project stages.

The plant which aligns with existing trains at the company’s gas processing complex in Bonny Island, Rivers State, will propel Nigeria’s LNG production capacity with additional 8.0 million tons per annum (mtpa) from current 22 mtpa to 30 mpta upon completion.

Managing Director and Chief Executive Officer, NLNG, Adeleye Falade, made the revelation at a forum hosted by the Nigerian Content Development and Monitoring Board (NCDMB) in Lagos.

According to him, the $7.0 billion project driven by Saipem, Chiyoda, Daewoo continues to enjoy broad support from the presidency and industry regulators.

In a presentation delivered on his behalf at the event, Falade stated that the project has so far consumed a significant 120 million man hours out of the target 200 million man hours of mostly indigenous labour.

He also declared that the company has enhanced all safety measures on the construction site after recording two lost time on injury (LTI) incidents. He assured that the project contractors are prioritizing workplace safety as the project drives to pre-commissioning stages.

Mr Falade, whose presentation was delivered by Train 7 Project Manager, Ali Uwais, also noted that the Train 7 project has helped galvanize local investment in steel fabrication and galvanizing capabilities, pointing at the 4000 tons of steel already deployed in the project.

He also pointed to the spur effect in the domestic cable manufacturing industry, stating that all cables used in the project are manufactured in Nigeria. He, however, added that additional interventions are required to close quality gaps in the local manufacturing industry.

ALSO READ: S&P Credits Dangote Refinery, Key Reforms over Nigeria’s Economic Revival

In noting the urgent need for in-country standard accountabilities, Mr Falade challenged agencies and regulators in the manufacturing industry to rise to the plate of ensuring international competitiveness on product quality.’

In counting some of the interventions driven by the company to close capacity and capability gaps in the domestic industry, he noted that the NLNG is relentless in establishing centers of excellence in tertiary institutions in the country with the purpose of addressing human capacity deficits.

The Train 7 project alone, he pointed out, has facilitated the training of 13,000 Nigerians, bolstered community focused participation initiatives, and facilitated rapid infrastructure development in the host Bonny Island.

Mr Falade told the industry audience at the event that the real value of the Train 7 project must transcend site activities to capture capacity, facilities and infrastructure developed for the project.

He called on other players in the industry to contribute to building capacity, standards and quality that compete globally, adding that Train 7 proves that Nigeria can grow and develop to global standards.

Continue Reading

Copyright © 2022. Biztellers, powered by Alphaxristi.

10
0
Would love your thoughts, please comment.x
()
x