A review of the utilization and monetization of Nigeriaʹs natural gas resources: Current realities

Natural gas is destined to become a larger part of Nigerian energy mix as the country seeks to guarantee the sustainability of its energy supply and benefit from greater energy efficiency and reduce energy-related costs. However, this continues to be a relatively slow process with large quantities of associated gas still being flared, as it has been since the 1950s. Natural gasʹ availability, versatility, accessibility, and more importantly its clean-burning characteristics when compared to other fossil fuels, is a substantial driver for its further utilisation in country. Nigeria is endowed with some 182 trillion cubic feet (tcf) of proven gas reserves, and that is mostly located in the Niger Delta. Nigeriaʹs government is keen to develop local utilization of gas employing a range of available technologies. These technologies include gas to power using gas fed by transmission and distribution pipeline networks to supply combined cycle gas turbines (CCGT), compressed natural gas (CNG), gas to liquids (GTL) to supply transportation fuels, gas to fertilizer (GTF) and petrochemicals to support domestic industries, and export options involving liquefied natural gas (LNG), the West African Gas Pipeline (WAGP), and, in the future, other potentially large-scale export routes (e.g. to Europe through a Trans Saharan Gas Pipeline (TSGP). This paper reviews these gas utilization options, export potential, and governmentʹs policies that are stimulating gas investments in Nigeria.