Skip to main content
Article
Nigeria's abundant gas reserves and shortfall in electricity: An apparent case of under-utilization
Newsletter (2011)
  • Kingsley Sawyerr, University of Dundee
Abstract

It is common knowledge in the international oil and gas industry that gas is gaining significant share in the global energy mix, and the World Bank estimates that the global demand for gas will outstrip oil by the year 2025. Global demand for Liquefied Natural Gas (LNG) is set to rise by 9 % a year during the next decade with Nigeria playing a key role in supplies. According to the BP Statistical Review of World Energy 2011, Nigeria has an estimated 187 Trillion Cubic Feet (Tcf) of proven natural gas reserves as of December 2010, making it the ninth largest natural gas reserve holder in the world. The majority of the natural gas reserves are located in the Niger Delta region of the country. It has been said over time that Nigeria is a gas province with drops of oil in it . Experts estimate the country’s gas life expectancy at over 100 years. The Nigerian National Petroleum Corporation (NNPC), the country’s national oil company estimates that its gas reserve could reach about 600trillion CF in 15 years with the commencement of focused gas exploration processes . Presently however, due to limited infrastructure, the sector has been largely undeveloped. In 2010, excluding flared or recycled gas, natural gas production was 30.3 Billion Cubic Metres (Bcu) representing just 1.1% of total world production.

Publication Date
Winter September 1, 2011
Publisher Statement
Power & Energy Group The Power & Energy Group (PEG) is one of the 6 practice groups of Aina Blankson LP. The PEG is specially directed to providing holistic legal and regulatory advice & support to its clients all over the world. The Group is made up of highly skilled legal practitioners who are well abreast of the local and international issues and policies that constantly change the legal, tax and regulatory structure of the energy sector. Our service to our clients are founded on the depth of our industry knowledge, which enables us to effectively act as a value-added extension of our clients’ legal and business teams on practice areas ranging from onshore and offshore exploration projects, oil and gas concessions, the environment, shipping, aviation and rail. Power & Energy Group Aina Blankson LP 5/7 Ademola Street South-West Ikoyi Lagos Tel: +234 1 8980882-3 Fax: +234 1 2710566 www.ainablankson.com
Citation Information
Kingsley Sawyerr. "Nigeria's abundant gas reserves and shortfall in electricity: An apparent case of under-utilization" Newsletter (2011)
Available at: http://works.bepress.com/kingsleysawyerr/1/