The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has raised alarms about a looming gas supply crisis, predicting a shortfall of 3.1 billion cubic feet (bcf) per day by 2030.
CEO of NUPRC Gbenga Komolafe, made this statement at the Association of Energy Correspondents of Nigeria (NAEC) conference on Thursday.
Komolafe indicated that demand for gas is projected to grow at a compound annual growth rate of 16.6% from 2020 to 2030. Despite expectations that natural gas production will rise from 8.0 bcf/d in 2020 to 12.2 bcf/d by 2030, he noted that this increase will not meet the high-demand scenario of 22.2 bcf/d anticipated for 2030.
Key projects driving this production increase include Nigeria LNG’s train 7 and train 8, the Nigeria-Morocco pipeline, and the Ajaokuta-Kaduna-Kano (AKK) natural gas pipeline project. However, Komolafe stressed that significant challenges in the power sector could dramatically alter the demand landscape within the next decade.
To address these challenges, NUPRC is focusing on enabling investments in cleaner hydrocarbon development, alongside initiatives such as the Nigerian Gas Flare Commercialisation Programme (NGFCP), aimed at flare elimination and gas monetization.
Komolafe emphasized that increased investment would ensure more gas availability for domestic uses, including liquefied petroleum gas (LPG), power generation, and petrochemicals, creating unique opportunities for investors in the sector.
