Nigeria – The Society of Energy Editors (SEE) has projected that Nigeria’s gas output will likely remain unchanged in the second quarter of 2025. In its latest outlook on the Nigerian energy sector, SEE noted that gas production is not expected to see significant growth unless key projects, such as the ANOH Gas Plant and the OB3 pipeline, commence operations.
The report highlighted that gas flaring penalties may become stricter, compelling companies to invest more in gas utilization. It also stated that Nigeria Liquefied Natural Gas (NLNG), which contributes about 7% to the global LNG supply, is facing increased competition from countries like Mozambique, Tanzania, and the United States. While LNG exports are expected to remain steady at 20 million metric tons per annum, unexpected pipeline attacks could disrupt supply. However, rising spot LNG prices could boost Nigeria’s revenue.
Domestically, the report forecasts increased gas usage driven by demand for autogas (CNG and LPG) and power generation. However, the adoption of the federal government’s CNG initiative remains slow due to high vehicle conversion costs (₦1.5–₦3 million) and limited refueling stations, with only about 50 operational. Although private sector players like NIPCO and Axxela are working to expand CNG infrastructure, progress has been slow. The report predicts a slight increase in CNG adoption, particularly in commercial vehicles, with possible government incentives like tax breaks and subsidies.
Additionally, Nigeria’s LPG consumption, which stood at 1.3 million metric tons in 2024, is growing, but household penetration remains low at just 30%. The country holds Africa’s largest proven gas reserves at 209 trillion cubic feet, yet utilization remains inefficient due to underinvestment in gas infrastructure, persistent gas flaring (8% of total production despite a 2030 zero-flare target), and supply disruptions caused by pipeline vandalism, particularly along the Trans-Forcados and Escravos-Lagos pipelines.
By Damilola Adeleke | March 31, 2025
Adeleke Damilola (ACTION) is a versatile content writer with expertise in news writing and a seasoned media professional and broadcast specialist. Currently serving as News Editor for DNews Info, Damilola is also the CEO of the ACTION brand, committed to shaping lives and establishing a legacy of excellence for present and future generations.
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