You need to active Javascript on your
BusinessDay
Nigeria's leading finance and market intelligence news report.

Nigeria’s gas reserves enough for 9 new power plants by 2037

Timipre Sylva, Nigeria’s minister of state for Petroleum Resources has indicated that Nigeria could add about 6,000MW of power generation by 2037 as the gas reserves are enough to support constructing new plants.

“Our proven gas reserves are sufficient to cover current demand levels and support plans for the construction of nine new gas-fired power plants with a combined name-plate capacity of nearly 6,000 MW by 2037,” Sylva said in a speech at the Seplat Energy Plc Summit in Abuja last Thursday.

The minister said this validates gas as a viable and transformational fuel for industrial development.

President Muhammadu Buhari who is also the Minister of Petroleum Resources declared 2021 – 2030 as the “Decade of Gas”. Sylva said the declaration provides the fulcrum for focusing effort and resources required at making gas the centrepiece of Nigeria’s economy by 2030.

The minister said that gas was at the heart of Nigeria’s energy transition and represents the first step in the journey to renewables away from oil.

“Already, we have declared that gas is our transition fuel, and also represents a destination fuel, as we envisage that it will be part of our energy mix by 2050, given the vast resources that can be commercialised and utilised.

Read also: Oil climbs near $84 a barrel on tightening global gas market

He also alluded to “generous incentives” proposed in the Petroleum Industry Act 2021 to enable the development, distribution, penetration and utilisation of gas.

In June, Sarki Auwalu, managing director and CEO of the Department of Petroleum Resources had said that Nigeria’s natural gas reserves now stood at 206.53 Trillion Cubic Feet (TCF), from 202.TCF.

Of this figure, Associated gas which represents gas discovered while drilling for oil stood at 100.73 TCF while Non-Associated Gas reserves stood at 105.80 TCF.

While Nigeria’s vast gas reserves have never been in doubt, investors have always agonised over the government’s policy, especially on the refusal to allow a liberalised gas pricing regime that has failed to unlock investments.

Earlier this year, the Nigerian Gas Association issued a communique calling for the removal of price controls and concessional Gas tariffs for sections of the market that are critical to achieving overall economic growth objectives.

Whatsapp mobile

Get real time updates directly on you device, subscribe now.