Nigeria’s domestic gas market is estimated to remain tight until at least 2020, if not 2025.
This is the view of Phillip Ihenacho, Chief Executive of Seven Energy, an aggressive local gas developer. “Nigeria’s gas reserves, though some of the highest in the world, are highly under-developed”. Out of about 5billion cubic feet per day produced, “only 14% reaches the domestic market, with the majority being exported as LNG, flared or used in E&P”
Seven Energy, with Frontier Oil as partner, supplies about 102Million standard cubic feet of gas per day to two power plants, a fertilizer plant and a cement company, all in the south east of Nigeria.
Ihenacho told the monthly meeting of the Nigerian Association of Petroleum Explorationists NAPE, that the country has very little processing and distribution capacity relative to its reserves, production and potential demand.
“Of about 2,000 km of gas pipelines, only a third is dedicated to domestic consumption with the remaining being dedicated to LNG exports”. Iheanacho said that while there are a number of ongoing and planned infrastructure projects, Nigeria is likely to remain infrastructure constrained for the next 10 to 15 years”.