ISSUES IN IMPLEMENTING THE NIGERIAN GAS MASTER PLAN

Part One

INTRODUCTION

1.1 BACKGROUND

Nigeria has abundant reserves of associated and non-associated gas estimated in excess of 187Trillion (standard) cubic feet (scf). Though Nigeria is ranked 7th in terms of proven natural gas reserves in the world, geological experts hold the view that more gas can still be found; potentially up to 600Tcf[1]. This is realisable if oil and gas companies deliberately explore for gas as against finding gas while in search for oil. To facilitate gas gathering, processing and utilisation will require favourable development oriented market conditions and policy framework for the gas sector.

For the power sector, over 70% of the power generating plants across Nigeria depend on gas to function[2] and electricity is so vital for national development. More than 90 million persons (55% of the population) do not have access to grid electricity. Nigeria targets to make reliable electricity available to 75% of the population by 2020 and 100% of the population by 2030[3]. The demand for gas to produce electricity will therefore increase over the years as shown in Figure 1.

[1] Presentation by David Ige – GMD Gas and Power of NNPC on the Nigerian Gas Master Plan Investors Road Show 2008; “Many basins remain untapped and gas discoveries to date are as a result of exploitation of oil and there is significant potential for reserves growth with focused gas exploration”.

[2]           According to the Energy Commission of Nigeria, 20 to 30% of current generating input is from hydroelectric power plants. See Appendix 1 to this Study.

[3] Energy Commission of Nigeria, 2015: FGN to increase electricity access to 100% by 2030: Leadership Newspaper p.26, March 17, 2015. Also Available on ECN Website: http://www.energy.gov.ng/index.php?option=com_content&view=article&id=125:fg-to-increase-electricity-access-to-100-by-2030&catid=1:latest-news

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