The Federal Government announced on Monday that the estimated performance of Nigeria’s domestic gas supply obligation had increased by 14.14% to 64.8% in 2021.
He said this was compared to the 50.66% achieved in 2020, noting that efforts were intensifying to further increase the country’s gas supply volumes in 2022.
The Managing Director of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Farouk Ahmed revealed this during the 2023 Domestic Gas Demand Requirements Workshop in Abuja.
He explained that Nigeria’s gas requirements have also increased slightly by 5.9% to reach 250 million standard cubic feet per day in 2022.
Ahmed said: “At the end of September 2021, the estimated performance of the domestic gas supply obligation was 64.8%, compared to 50.66% achieved in 2020, comparing the total annual allocation of the ‘domestic supply obligation to the actual daily supply reached.
“The 14% performance increase over the previous national gas year can be primarily attributed to the concerted efforts made by the regulator and all our stakeholders to improve market performance.”
The NMDPRA boss, however, noted that despite the improved performance recorded in 2021, the domestic gas market continued to experience significant challenges.
He highlighted the challenges ahead, including infrastructure capacity constraints, payment assurance and long-standing debts inherited from gas supplied to the electricity sector, as well as poor enforcement of contract sanctity.
Others include constraints on the evacuation of the energy produced and low investment flows in the sector, among many challenges.
Ahmed, however, assured workshop participants that all necessary preparations had been made to ensure that this year’s domestic gas demand requirement was coordinated in a safe, productive and efficient manner.
He said the regulatory process to establish a DGDR was a crucial step in implementing key provisions of the Petroleum Industry Act 2021, which were set out for the supply of wholesale marketable natural gas for the internal gas market.
Nigerian Upstream Petroleum Regulatory Commission Head of Gas Production and Flare Monitoring, Jennis Anyanwu expressed optimism about Nigeria’s ability to meet the 12.2 billion ft target standard cubes of gas set in the federal government’s Gas Decade initiative.
He said, “Certainly, Nigeria can meet the deadlines set for the Gas Decade. There is high-level political commitment to make sure that happens.