Upstream: Nigeria’s gas production declines by 3% in one year

Nigeria’s gas production witnessed another setback, as the sector recorded a marginal decline by three per cent to 3,004.06 Billion Cubic Feet (BCF) in one year.

This development is coming as a negative momentum to the Federal Government’s determination in improving the utilisation of gas in the country.

According to statistics obtained from the Nigeria National Petroleum Corporation for the period – November 2019 to November 2020 – a total of 3,004.06 BCF of gas was produced representing an average daily production of 7,642.69 Million Standard Cubic Feet per Day (mmscfd) during the period.

Period-to-date Production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and NPDC contributed about 67.29 per cent, 19.97 per cent and 12.74 per cent respectively to the total national gas production.

While comparing the previous year’s production for the period November 2018 to November 2019, a total of 3,091.24 BCF of gas was produced representing an average daily production of 7,882.27 mmscfd during the period.

Meanwhile, the report noted that gas production in November 2020 also decreased by 3.86 per cent at 222.34BCF compared to the output in October 2020; translating to an average daily production of 7,411.52mmscfd.

Reacting to the production drop, NNPC spokesman, Kennie Obateru, said the drop is attributed to the nation’s adherence to the Organisation of Petroleum Exporting Countries, OPEC’s production quota system.

“Nigeria was being accused of not adhering to OPEC quota system, but over time, we have paid back what we over-supplied, and as at last week, OPEC alluded to the fact that Nigeria has now fully complied.”

The report further stated that the daily average natural gas supply to gas power plants increased by 5.21 per cent to 789mmscfd, equivalent to power generation of 3,358MW. Out of the 219.67 BCF of gas supplied in November 2020, a total of 137.41 BCF of gas was commercialised; consisting of 39.99 BCF and 97.42 BCF for the domestic and export market respectively.

Energy Vanguard gathered that the disparity between the production and supply figure is as a result of reinjection. A total of 2.67BCF of gas was reinjected to sustain production.

Meanwhile, this translates to a total supply of 1,332.82 mmscfd of gas to the domestic market and 3,247.44 mmscfd of gas supplied to the export market for the month.

“Total gas supply for the period November 2019 to November 2020 stood at 2,987.51 BCF out of which 474.77 BCF and 1,361.17 BCF were commercialized for the domestic and export market respectively. Gas re–injected, Fuel gas and Gas flared stood at 1,151.58 BCF.

“Out of the 1,332.82 mmscfd of gas supplied to the domestic market in November 2020, about 788.64 mmscfd of gas representing 59.17% was supplied to Gas-Fired power plants while the balance of 544.18 mmscfd or 40.83% was supplied to other industries.

“Similarly, for the period of November 2019 to November 2020 an average of 1,214.27 mmscfd of gas was supplied to the domestic market comprising an average of 711.42 mmscfd or (58.59%) as gas supply to the power plants and 502.86 mmscfd or (41.41%) as gas supply to industries,” the report added.