Nigeria’s Gas Output Surges by 3.21% in November 2024, Hitting 172 Billion SCF

In a notable achievement for Nigeria’s energy sector, the country’s gas production rose by 3.21% in November 2024, reaching 172.243 billion standard cubic feet (SCF) compared to 166.894 billion SCF recorded in October. This increase reflects a daily average output of 5.741 billion SCF (BSCF), up from the previous month’s 5.384 BSCF, according to the latest data released by the Nigerian National Petroleum Corporation Limited (NNPCL).

Breakdown of Gas Production

The NNPCL’s gas production and utilisation report for November 2024 highlighted that Associated Gas (AG) dominated output, contributing 65.31% of the total production with 112.499 billion SCF. Non-Associated Gas (NAG) accounted for the remaining 34.69%, amounting to 59.744 billion SCF.

Out of the total gas produced, a commendable 93.9% was utilized, while 6.1% was flared, demonstrating Nigeria’s ongoing efforts to maximize its gas resources. Specifically, 161.711 billion SCF of gas was utilized in November, reflecting a 3% increase from the 156.933 billion SCF utilized in October. However, gas flaring slightly increased by 0.84%, with 10.561 billion SCF flared in November compared to 10.473 billion SCF in the preceding month.

Utilization Breakdown

The report provided an in-depth analysis of how the utilized gas was distributed:

• Fuel Gas: 10.341 billion SCF was used for internal operations.
• Liquefied Natural Gas (LNG): 67.267 billion SCF was channeled to the Nigerian Liquefied Natural Gas (NLNG) facility.
• Gas-to-Liquids (GTL): 4.893 billion SCF was directed to the Escravos Gas to Liquid project.
• Liquefied Petroleum Gas (LPG): 2.519 billion SCF was processed into natural gas liquids and LPG.
• Domestic Sales: The Nigerian Gas Company (NGC) utilized 23.426 billion SCF for domestic distribution.
• Reinjection and Lift Make-Up: 51.427 billion SCF was reinjected into oil wells and used for gas lift operations.

Top Gas Producers

Shell Nigeria emerged as the leading producer for November 2024, delivering 41.815 billion SCF, a significant 18.98% increase from the 35.143 billion SCF recorded in October. Other top contributors included:

• Mobil: 26.865 billion SCF.
• Total Energies: 20.106 billion SCF.
• Chevron: 20.007 billion SCF.
• Star Deepwater: 13.344 billion SCF from the Agbami FPSO.
• Total Upstream: 13.230 billion SCF from the Akpo FPSO.

Low Performers and Gas Flaring Offenders

Despite the overall progress, some companies recorded negligible or no gas production during the period. Agip Energy and Natural Resources (AENR), Amni Petroleum, and the Nigerian Agip Oil Company (NAOC) reported zero output. On the lower spectrum, the NNPC Exploration and Production-Chevron Nigeria Limited Joint Venture and Sterling Oil Exploration and Energy Production Company produced only 41 million SCF and 42 million SCF, respectively.

In terms of gas flaring, significant offenders included:

• NEPL/Seplat JV: Flared 100% of its gas output.
• Seplat Petroleum Development Company: 100% flared.
• NEPL-Chevron JV: 100% flared.
• NEPL from OML 86/88: Also flared 100% of its production.

These flaring figures highlight the need for stricter regulations and investments in gas capture technologies to mitigate environmental impact and revenue loss.

Nigeria’s Gas Ambitions

The November 2024 production surge aligns with Nigeria’s broader goals to capitalize on its vast gas reserves. With initiatives such as the Decade of Gas, the government aims to position Nigeria as a global gas hub, leveraging resources to drive industrial growth, enhance energy security, and reduce carbon emissions through sustainable practices.

While the increase in production is a positive step, the slight rise in gas flaring underscores the persistent challenges in the sector. As the country continues to boost production, addressing these challenges will be critical to maximizing the economic and environmental benefits of its gas resources.

Conclusion

Nigeria’s gas production figures for November 2024 offer a glimpse into the country’s potential as a key player in the global energy landscape. With top producers like Shell and Mobil driving growth and ongoing efforts to curb flaring, the future of Nigeria’s gas industry looks promising. However, sustained progress will require comprehensive strategies that balance increased production with environmental stewardship and efficient utilization.

This data from the NNPCL serves as both a benchmark of progress and a reminder of the work that remains in optimizing Nigeria’s gas sector for the benefit of its economy and people.