Gas supply to the domestic market has been predicted to record a shortfall of 2.9 billion standard cubic feet per day (bscf/d) by 2020, equivalent to about 21 trillion standard cubic feet reserves, available data from the industry has shown.
According to a document from the Nigerian Gas Association (NGA), based on all currently known domestic gas supply projects, base case supply is forecast to grow to 4.7bcf/d by 2020 and this implies an imminent shortfall of about 2.9bscf/d, which is about 21 trillion standard cubic feet reserves of natural gas by 2020.
The data explained that from next year, the base case gas supply does not even meet the power demand projection, but the NGA. It noted that it has identified seven big projects that need to commence immediately to bridge the supply gap up.
The gas projects are the Escravos-Lagos pipeline 11, Obiafu/Obrikom – Oben pipeline, and others, which are under tender stage including Odidi-Warri Expansion Pipeline, Ajaokuta-Kaduna-Kano Pipeline that will be built through public, private partnership (PPP) and QIT-Obigbo – OB/OB Pipeline, which also will be built through PPP.
The data, based on ongoing and planned gas projects, showed that the domestic gas supply deficit will continue till 2025 when it will zero out. The data showed that current daily gas production is 7.9bscf/d. Out of the 7.9bscf/d, domestic consumption takes 16 per cent or 1.2bscf/d, which is used mainly by the power sector and industries.
Also, 36 per cent of the daily production, which is about 2.7bscf/d, is used re-injection and other operational usage while 38 per cent or 3.3bscf/d is prepared as liquefied natural gas (LNG) and goes out as export through the Nigeria Liquefied Natural Gas (NLNG) and the remaining 10 per cent or 0.75bscf/d is flared.
According to the NGA, Nigeria holds the ninth largest proven gas reserves in the world and the largest in Africa with about 192 trillion standard cubic feet, which is still hugely untapped.
SOURCE: The Nation