MEQuest
Module 5 of 8 55 min · 5 units

Natural Gas & LNG

Nigeria holds the largest proven natural gas reserves in Africa and ranks among the top ten globally, yet for decades gas was treated as a mere by-product of oil production - flared in vast quantities rather than captured and monetised. This module traces the evolution of Nigeria's gas sector, from the scale and distribution of its reserves to the rise of Nigeria LNG as a world-class exporter, the long struggle to eliminate gas flaring, and the ambitious plans to build a robust domestic gas market.

Learning objectives

After completing this module, you'll be able to:

  • Quantify Nigeria's proven gas reserves, distinguish between associated and non-associated gas, and explain why gas was historically neglected in favour of oil.
  • Trace the history of Nigeria LNG Limited from its formation in 1989 to its current position as a major global LNG exporter, including shareholders, capacity, and the Train 7 expansion.
  • Assess the environmental and economic impact of gas flaring in Nigeria and evaluate the regulatory and commercial efforts to reduce it.
  • Analyse the structure of Nigeria's domestic gas market, including the National Gas Master Plan, gas-to-power initiatives, and the challenges of pricing and distribution.

~209 TCF

Gas Reserves

~22 MTPA

NLNG Capacity

Declining

Gas Flare Rate

614 km

AKK Pipeline

Sources & Further Reading

  • Nigeria LNG Limited, "About NLNG". nlng.com
  • NNPC, "Gas Development and Utilisation"
  • National Gas Policy 2017, Federal Ministry of Petroleum Resources
  • Gas Aggregation Company Nigeria (GACN), "Domestic Gas Supply Obligation"