Nigeria is on course to produce 1,780 billion cubic feet (bcf) in the current year, up from 1,450 billion feet in 2021 according to to new report, setting new prospects to supply Europe.
The latest African Energy Chamber’s (AEC) Q1 2022 Outlook has stated that the country, with this development, is expected to be part of a potential supplier to meet demand in Europe.
It said, “Existing producing projects and the projects currently under development in Nigeria are expected to ensure a resilient supply through 2025.
“With this portfolio, Nigeria has an advantage for Europe to look up to the West African country as a potential supplier.”
In addition, the report also indicated that the multi-billion 4,128km Trans-Saharan Natural Gas Pipeline being built by the governments of Nigeria, Niger and Algeria will enable the integration of Trans-Mediterranean, Maghreb-Europe, Medgaz, and Galsi Pipelines for Europe to leverage west and north Africa’s oil and gas resources to meet demand.
The AEC outlook also indicated that once completed, the pipeline will transport 30 billion cubic metres of natural gas per year, and Nigeria, as a leading producer in Africa, can produce a significant share of that capacity.
Nigeria’s current natural gas producing fields are expected to see a steep decline as we approach the mid-2020s, a worrying situation that can reduce the country’s production capacity, according to the report.
Hendrick Malan, the CEO of energy market research firm, Frost & Sullivan, in an exclusive interview with the AEC has said, “Nigeria is rich in oil and gas resources but still does not have adequate infrastructure such as a functioning refinery.
Malan added that, “In order to utilize its oil and gas resources effectively, Nigeria needs to build more infrastructures locally to process its energy.
“To be able to build the infrastructure needed, there is a need for direct involvement from a combination of the private and public sector partners,” he said.
Recall that major oil and gas producers in Nigeria, such as ExxonMobil, Shell, and TotalEnergies, are expected to diversify their portfolios and exit the market beginning in 2022, potentially reducing production and the West African country’s ability to expand its energy exports to Europe.
ExxonMobil has already agreed to pay Seplat Energy $1.2 billion for four oil mining licenses and natural gas recovery plants.
“Factors such as infrastructure vandalism, a continued lack of investment in new exploration activities, and political instability/civil unrest in Nigeria’s oil and gas-rich regions continue to undermine the country’s ability to optimize oil and gas production and increase exports,” the report noted.
