BusinessDay

National gas reserve grew to 208.62 tcf in January

…amid $3.27bn loss to crude oil theft

The national gas reserve recorded a slight increase from 206.53 trillion cubic feet in 2021 to 208.62 trillion cubic feet (tcf) in January 2022, the Nigerian Upstream Petroleum Regulatory Commission data reveals.

Speaking on the national reserve report during a press briefing in Abuja on Friday, the chief executive of the commission, Gbenga Komolafe, said that the nation’s oil and condensate reserves status as of January 1, 2022, was 37.046 billion barrels representing a slight increase of 0.37 percent compared to 36.910 billion barrels as at January 1, 2021.

“On the other hand, the national gas reserves status as of January 1, 2022, was 208.62 tcf, representing an increase of 1.01 percent compared to 206.53 tcf as of January 1, 2021.

“With a proven gas reserve base of 208.62tcf, we are on track to increase our reserves volumes to 220tcf in less than 10 years and 250tcf thereafter,” he said.

Analysis of the report indicates that Nigeria currently produces about 8BSCF/D of gas, out of which 20 percent is delivered to the domestic market, approximately 40 percent is exported to international markets, 30 percent is utilised for producer’s internal consumption and the excess gas is flared.

According to Komolafe, the commission in recognition of the need to increase the crude oil and gas reserves has initiated campaigns to identify oil and gas wells that are producing below capacity.

This, according to him, will position Nigeria to take advantage of the gap in the global gas demand-supply chain created by the conflict between Russia and Ukraine.

“The conflict between Russia and Ukraine has provided Nigeria with a unique opportunity to fill this gap through the implementation of several natural gas developmental initiatives.

Read also: Nigeria, nine others account for 75% of gas flaring – World Bank

“As the Federal Government has declared the years 2021-2030 to be the ‘Decade of Gas’, the commission is taking steps to expand and develop the nation’s huge gas resources through enhanced gas exploration, development and utilisation schemes which will lead to gas reserves growth, increased gas production, maturation of the domestic and export gas market, as well as gas flare elimination.

“The commission is currently engaging all lessees on their Natural Gas Flare Elimination and Monetisation Plan to ensure compliance with Section 108 of the PIA and boost supply to the rapidly growing gas market,” he said.

Komolafe further noted that the incessant crude oil theft recorded in the country has adversely impacted the commission revenue generation as well as the nation’s oil earnings.

He disclosed that the commission has commenced a full-scale audit of crude oil theft and assessment of upstream assets integrity audit to establish actual crude oil theft figures in the upstream petroleum industry.

The commission had earlier announced that Nigeria lost about $3.27 billion worth of crude to oil theft, with an average monthly value loss of $233.99m and an average daily value loss for the period is about $7.72m between January 2021 and February 2022.

Losses recorded in the period, according to the commission, were mainly from Bonny, Forcados, and Brass terminal networks.

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