INTRODUCTION
In our 2023 year-end report, we analysed the opportunities, challenges, and transformations experienced in Nigeria’s oil and gas industry, with a particular emphasis on gas. Additionally, we provided industry projections for 2024 and the upcoming years. Our report focused on Nigeria’s energy transition efforts highlighting the nation’s development and utilization journey where we examined historical gas policies, significant gas projects following the announcement of the ‘Decade of Gas’, international events such as the influence of the Baku-Tbilisi-Ceyhan (BTC) Pipeline on energy security in Europe, as well as the potential effects of the Nigeria-Morocco pipeline on both energy security and economic integration and collaboration within the African region. In our report, we stated that despite the global push for transitioning from fossil fuels to renewable energy (RE) sources, the International Energy Agency (IEA) has stated in its global pathway for energy transition that specific fossil fuels such as natural gas could serve as a transitional bridge for economies facing challenges in readily adopting renewable sources. In this Mid-Year Report, we examine the key projects propelling Nigeria’s Decade of Gas Policy and its Energy Transition Plan (ETP). We also examine new investments in the petroleum industry aimed at driving economic growth and enhancing energy security. Additionally, we spotlight recent developments in Nigeria’s gas sector, the sources of funding, and the projections for gas investments in the forthcoming years.
The future of the Nigerian petroleum industry will depend on utilising the country’s abundant natural hydrocarbon resources for shared prosperity, energy accessibility, affordability, sustainability, and security. Consequently, the Nigerian Government has designated natural gas as the immediate transition fuel due to its lower carbon footprint compared to other fossil fuels. Nigeria’s role as a major player in the global gas industry is certainly not in doubt, as Nigeria ranks highest in Africa and 10th globally in terms of proven gas reserves with huge growth potential. As of January 1, 2023, Nigeria boasts 208.83 trillion cubic feet (tcf) of natural gas reserves, opening a large opportunity for investments in the upstream gas sector. A new target is being considered by the Federal Government of Nigeria to grow its gas reserves to 210 tcf by 2025 and to 220 tcf by 2030 with an upside potential of 600 tcf.
