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Nigeria’s Policy Aspiration for Gas


Nigeria has abundant gas resources. With 185TCF, it holds the worlds’7th largest reserves. Like it high grade Bonny Light crude, Nigeria has very quality gas low in sulphur and rich in natural gas liquids. To date there has not been a dedicated exploration for gas reserves for gas in the country. The proven gas reserves were consequent on oil exploration. Dedicated gas exploration is expected to significantly increase the gas reserves. Estimates of Nigeria’s undiscovered gas reserves range from 300-600TCF, with the potential to make it he world’s 4th largest after countries as Russia, Iran and Qatar only.


The administration of President Umaru Musa Yar’adua has identified the accelerated development of gas sector as a focal strategy for achieving the national aspiration of aggressive GDP growth. Energy represents a key pillar of the President’s 7 point agenda. Gas is key to this agenda in view of its potential to transform the power sector in the country as well as drive major industrialization including huge potential for LNG


In recent months there has been an unprecedented growth in gas demand from Nigeria both in the domestic and export markets. From a current demand level of about 4-5bcf/d, there has been an expression of interest in gas demand which is forecast to peak at about  20bcf/d by 2015. With the huge existing and potential gas reserves as well as the market potential, the administration through the Honorable Minister of State for Energy (Gas)  Mr Emmanuel Odusina is aggressively pursuing gas development through a 4 pronged strategy:

  • Enabling access to existing gas reserves


  • Accelerated development of the domestic gas market in a manner that significantly drivers the multiplier effect on GDP  


  • Aggressively eliminate gas flaring and systematically unlock both proven and undiscovered gas reserves Repositioning Nigeria competitively both in terms of cost effectiveness and in market share in high value export markets.



President Yar’Adua’s policy thrust is to ensure the development of a viable domentic gas market which is mutually enabled by an aggressive growth in the export market. To support the expansion of the Nigeria Gas sector and articulate a holistic framework, the federal government recently approved the Nigerian Gas Master-plan. This comprises:

a)      A Gas Pricing Policy

b)      A gas Supply Obligation Regulation

c)      A strategic $20-30bn Gas infrastructure Blueprint and

d)      A short term accelerated gas production plan that will immediately address the Power problem  

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