The predicted performance of Nigeria’s domestic gas supply obligation increased from 14.14% to 64.8% in 2021, according to information released by the Federal Government on Monday.
It said that efforts were being stepped up to further increase the nation’s gas supply volumes in 2022 and compared this to the 50.66% that was attained in 2020.
This information was revealed at the 2023 Domestic Gas Demand Requirements workshop in Abuja by Farouk Ahmed, the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
He added that in 2022, Nigeria’s gas demand would slightly increase by 5.9% to 250 million standard cubic feet per day.
According to Ahmed, “As at end of September 2021, the estimated performance of the domestic gas supply obligation was 64.8 per cent compared to 50.66 per cent achieved in 2020, when comparing annual total domestic supply obligation allocation to the actual daily supply met.
“The increased performance of 14 per cent in the preceding domestic gas year can be majorly attributed to the concerted efforts implemented by the regulator and all our stakeholders towards enhancing the performance of the market.”
However, despite the improved performance seen in 2021, the head of NMDPRA highlighted that the domestic gas market has continued to face serious difficulties.
He listed the problems, which included inadequate performance of contract sanctity, infrastructure capacity limitations, payment assurance, and long-standing residual obligations of gas provided to the power sector.
Other difficulties include limitations on the transfer of produced energy and poor investment flows into the industry, among many others.
Furthermore, Ahmed reassured attendees that all essential arrangements had been taken to guarantee that this year’s Domestic Gas Demand Requirement was organized in a secure, fruitful, and effective manner.
According to him, the establishment of a DGDR as part of the regulatory process was a crucial step in putting the major elements of the Petroleum Industry Act 2021 into effect, which were defined for the supply of wholesale marketable natural gas for the domestic gas market.
Jennis Anyanwu, Manager, Gas Production and Flare Monitoring, Nigerian Upstream Petroleum Regulatory Commission, expressed confidence that Nigeria would achieve the objective of 12.2 billion standard cubic feet of gas established in the Federal Government’s Decade of Gas project.
“Certainly, Nigeria can meet the deadlines set for the Decade of Gas. There is a high-powered political commitment to ensure that this happens.
