Nigeria crawls as Qatar, Australia race towards gas

… Train 7 no longer ambitious- Attah

Nigeria, a country with a proven gas reserves of 209 trillion cubic feet of gas, is struggling to keep pace with its global competitors as Qatar and Australia are rapidly expanding their gas production and exports, in a world transitioning towards cleaner energy sources.

Qatar, one of the world’s top LNG exporters, plans an 85 percent expansion in LNG output from its North Field’s current 77 million metric tons per year (mtpa) to 142 mtpa by 2030, from previously expected 126 mtpa.

The Gulf nation has been investing heavily in infrastructure, including new liquefaction facilities and shipping capabilities, positioning itself as a key supplier for Europe and Asia, both of which are seeking alternatives to Russian gas.

Australia is also making significant strides, with several projects in the pipeline that could bolster its LNG output. The country is focusing on expanding its existing facilities, such as the Ichthys and Prelude projects, and is leveraging technological innovations to enhance production efficiency.

Analysts project that Australia could reclaim its title as the world’s top LNG exporter by the end of 2025, following recent production surges.

This contrasts with the situation in Nigeria, who holds Africa’s largest gas reserves of more than 209 trillion cubic feet, but flares, or burns, most of the gas it produces along with oil because it lacks the infrastructure to process it.

“The reality is that we started our “Gas to LNG” journey as a means of arresting gas flares and creating a revenue stream for the economy, just two years behind Qatar,” Tony Attah, the former managing director of Nigeria Liquefied Natural Gas (NLNG) said at an industry event organised by the Petroleum Club on Wednesday night.

Read also: Celebrating Independence: Gas-rich Nigeria faces energy paradox

He added, “Gas is a game changer, Nigeria must seek to be more deliberate and ambitious in a manner akin to what Qatar has done with its gas to be No.1 in the world of LNG”.

Attah noted that Nigeria LNG Limited’s (NLNG) capacity at 30MTPA by the end of 2025 when it commissions Train 7, will be equal to Qatar’s incremental capacity project despite Nigeria’s massive gas reserves.

BusinessDay’s findings showed while the Train 7 project will add about 35percent capacity to move NLNG from the current 22 mtpa to about 30 mtpa, Qatar has also taken a very deliberate investment decision to add a 30 mtpa to its current 77 mtpa to ensure it returns toNo.1 when completed.

“Essentially Train 7 alone is no longer ambitious and we should now pull up our sleeves to actively pursue the development of our gas reserves as a matter of urgency,” Attah said.

NLNG, owned by the federal government of Nigeria and three international oil companies, has seen its output decline owing to gas supply constraints, which also pose a threat to its expansion plan.

The NLNG had on October 17, 2022, declared a force majeure on product supplies from its production facilities on Bonny Island, following the declaration of force majeure by all its upstream gas suppliers.

It said the notice by the gas suppliers was a result of high flood water levels in their operational areas, leading to a shut-in of gas production that caused a significant disruption of gas supply.

Nigeria has never been short of big ideas and projects when it comes to gas. Nigerian Liquefied Natural Gas (NLNG) Trains 7 remains at 67 percent completion while the Brass LNG, and Olokola LNG have been awaiting final investment decisions for years. The $12 billion Trans-Saharan Gas Pipeline Project (TSGP), expected to help Nigeria achieve zero gas flaring by 2020, remains an illusion years after it was conceived.

“Gas plays a pivotal role in Nigeria’s energy transition, presenting significant opportunities for both economic growth and environmental sustainability,”

Some stakeholders have said if Nigeria were to be fully exploiting its gas resources, it could potentially be adding as much as $17 billion annually or as much as 6 percent to its less than $500 billion economy, helping to uplift millions of its citizens, 47.7 percent of whom live in extreme poverty.