Key Developments in 2024:
- Executive Orders and Directives:
Tax Incentives: Introduced to attract investments, particularly in greenfield gas projects with targets for first gas production by 2029.
- Transition to Cleaner Energy:
CNG Initiatives: Launch of the Presidential Compressed Natural Gas Initiative (PCNGi) and a ₦10 billion CALM Fund for vehicle conversions.15 locally-made CNG-powered buses launched in Abuja as part of a pilot project, with plans to expand nationwide.
Infrastructure Growth: Increase in CNG conversion centers (from 7 to 170) and training of 1,000 technicians.
- Gas Infrastructure Development:
Investments totaling ₦122 billion through the MDGIF for midstream and downstream gas projects, including:
A 5,000MT butane storage facility to support domestic gas utilization.
20 mobile CNG refueling stations to reduce reliance on traditional fuels.
Key Projections for 2025
Reduction in Gas Flaring:
With permits awarded under the Nigerian Gas Flare Commercialization Programme, full operations at flare sites will commence, significantly reducing flared gas volumes.
Completion of the AKK Gas Pipeline:
The Ajaokuta-Kaduna-Kano (AKK) gas pipeline is expected to be operational by Q1 2025, transporting 3,500 million cubic feet of natural gas daily, bolstering power supply and industrial demand.
Increased Gas Supply to Domestic Markets:
Projects like Seplat’s Sapele gas plant and the ANOH gas project will add over 385 million cubic feet of gas daily to the domestic market in 2025.
Enhanced Regulatory Framework:
Finalization of pending regulations under the Petroleum Industry Act (PIA), including new guidelines for upstream and downstream operations, is anticipated.
Growth in CNG Utilization:
Conversion centers for compressed natural gas (CNG) are expected to grow from 170 to 500 by year-end, driving progress toward 1 million CNG vehicles by 2027.
Conclusion
While 2024 marked notable progress in production and infrastructure, challenges in meeting production targets and regulatory conflicts tempered the sector’s growth. The Nigerian gas sector is poised for growth in 2025, with strategic initiatives to increase production, enhance local participation, strengthen gas infrastructure, and promote cleaner energy adoption.The government’s commitment to cleaner energy and strategic investments aims to position Nigeria for a sustainable and diversified energy future.
At Gasavant Africa , we specialize in a suite of solutions that include developing gas-generated power solutions for the industrial, residential, telecoms, mining, and transportation sectors; the supply and trade of natural gas liquids, and compressed/liquefied/piped natural gas; and the deployment of bulk gas storage solutions.
Feel free to reach out to us via email on connect@gasavant-africa-com.preview-domain.com!
Jide Talabi
Gasavant Africa Ltd
