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Rising daily gas production at 7bcf yet to reflect drop in local prices

A puzzle that has proved hard to resolve is why the rising gas production which recently reached seven billion cubic feet per day (cf/d), has not reflected in price drop in the consumer market in Nigeria.

Apart from domestic market price drop, several power penetrating plants had continued to decry poor availability of gas to grow the sector.

The Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru, said in Lagos, during a Gas Roundtable organised by Nigerian Gas Association (NGA), that 1.2 billion cf/d of the total production is used for domestic purpose, like powering of plants and industries and domestic uses.

Baru, added that 3.3 billion cf/d is exported by the Nigerian Liquefied Natural Gas (NLNG), while 2.7 billion cf/d is re-injected into operations.

According to him, Nigeria still flares 10 per cent of the total gas production, which is about 0.75 billion cf/d.

Explaining more on opportunities in the midstream of the gas value chain, Baru listed areas that should interest investors, including investment in gas processing facilities, mini Liquefied Natural Gas (LNG), floating LNG, gas storage facilities, EPC of over 2000 kilometre gas pipelines, Engineering, Procurement and Construction (EPC) of gas processing facilities, EPC of gas metering and monitoring system and fabrication of pipes.

Baru averred that the downstream value chain offered opportunities for investment in LPG bottling and marketing, investment in gas-based industries (fertilizer, methanol, petrochemicals, CNG stations and conversion workshop), EPC of fertilizer and petrochemical plants, manufacturing of LPG cylinders/accessories.