With a proven gas reserve base of 208.62TCF (as at 1st January 2022), Nigerian natural gas reserve volume is expected to increase to 220TCF in less than 10 years and 250TCF thereafter.
This was revealed by Gbenga Komolafe, Chief Executive, Nigerian Upstream Petroleum Regulatory Commission(NUPRC) in a data analysis obtained by EnergyDay from the official website of the Commission.
NUPRC in the analysis of the report revealed that the country’s gas reserves status as of January 1, 2022 was 208.62 (trillion cubic feet) TCF, representing an increase of 1.01% compared to 206.53 TCF as at 1st January 2021.
The report confirmed that Nigeria currently produces about 8BSCF/D of gas, out of which 20 percent is delivered to the domestic market“
Formulation of all-inclusive strategies to increase crude oil and gas reserves (from 37 billion barrels and 208.62 TCF) requires thorough consideration of all factors militating against efficient and effective exploration and production operations, and identification of low hanging fruits or opportunities
“We have therefore become more deliberate and swift in implementing strategic actions and initiatives aimed at increasing our crude oil and gas reserves and production.
Some of the strategies according to NUPRC includes inventorization of shut-in wells and analysis of the inventory to map the reasons for shut-in and devise measures for quick reopening; Using well and reservoir surveillance activities in identifying poorly performing wells and work-over candidates for quick intervention.
The Commission promised to embrace and adopt new technologies and advanced recovery techniques for unlocking some identified stranded oil and gas resources.
NUPRC said that it is currently reviewing all leases on their Natural Gas Flare Elimination and Monetization Plan to ensure compliance with Section 108 of the PIA and to boost supply to the rapidly growing gas market.
The Commission said, “In the face of the global energy transition and the need for cleaner sources of energy, gas is being positioned as our immediate transition fuel to lower the Nation’s carbon emission footprint in line with our climate change commitment.
“Additionally, we are encouraging investors to leverage on the generous gas fiscal incentives in the PIA such as zero hydrocarbon tax, reduced royalty rates, tax consolidation provisions amongst others, to take Final Investment Decisions on their proposed upstream projects.
The Commission further noted that Nigeria produces about 8billion Standard Cubic Feet per day of gas, out of which about 20% is delivered to the domestic market, approximately 40% is exported to international markets and 30% is utilized for producer’s internal consumption.