Abuja: Nigeria is making significant strides towards establishing a robust regional gas ecosystem in West Africa, aiming to supply 12 billion cubic feet per day (bcfd) by the year 2030. This ambitious vision is spearheaded by the ‘Decade of Gas Secretariat’, which has identified 16 crucial gas infrastructure projects. These projects necessitate an estimated investment of 22 billion dollars to boost capacity and align gas supply with demand.
According to News Agency of Nigeria, Mr. Ed Ubong, the Coordinating Director of the Decade of Gas Secretariat, shared updates at a Ministerial Roundtable on Regional Gas Development and Cooperation in Africa, held in Abuja. The event, organized in collaboration with the World Bank, highlighted Nigeria’s gas production increase from approximately 6.8bcfd in 2023 to an anticipated 7.5bcfd by 2025. This growth is attributed to enhanced collaboration among government entities, regulators, and investors.
Ubong emphasized the tracking of over 215 demand-driven projects through a centralized system to ensure coordinated execution and accountability. He noted that several upstream investments have reached the Final Investment Decision stages, with four of the 16 priority gas infrastructure projects already in execution.
To address power sector liquidity, Ubong stressed the need to clear existing debts and implement measures to avert further debt accumulation. He identified gas-to-power initiatives and the increased domestic use of Liquefied Petroleum Gas (LPG) as pivotal areas of focus. These efforts aim to enhance electricity supply and promote cleaner cooking alternatives.
Improving power supply remains central to Nigeria’s gas initiative, requiring synchronized actions across ministries and industry stakeholders. Public-private partnerships are deemed vital for the delivery of priority projects and driving regional energy transformation. Ubong highlighted the importance of balancing supply and demand, alongside cross-border alignment on infrastructure and energy planning, to achieve these goals.
Nigeria is committed to leveraging its vast gas resources to foster economic growth and regional energy integration across Africa. In addressing domestic energy needs, the country aims to boost LPG consumption from 1.8 million tonnes annually to three million tonnes by 2030, supported by the distribution of over five million gas cylinders to promote cleaner energy use.
Ubong acknowledged the critical role of development partners and key industry stakeholders, including the World Bank, regulators, and project sponsors, in advancing funding and collaboration in the gas sector. The session aimed to explore Africa’s gas landscape, offering expert insights and fostering collaboration between financiers and project developers to identify efficient gas transportation solutions.
The current drive for gas development in Nigeria traces back to the 2021 declaration of the Decade of Gas, marked as a strategic shift in the country’s energy focus. The initiative continues to receive robust support from President Bola Tinubu under the ‘Gas for Nigeria’s Prosperity’ agenda, alongside sustained efforts by the Minister of State for Petroleum Resources (Gas).
The establishment of a dedicated secretariat in 2023 has streamlined implementation, focusing on unlocking gas resources, expanding infrastructure, ensuring competitive pricing, boosting demand, and building human capacity.