Nigeria Grapples With Funding Hurdles For Local Gas Development Projects

Nigeria is struggling with inadequate funding for its domestic gas projects, despite having one of the world’s largest natural gas reserves, disclosed the Executive Vice President Upstream of Nigerian National Petroleum Company Limited (NNPCL), Oritsemeyiwa Eyesan.

Speaking at the fortieth anniversary of the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), Eyesan highlighted the persistent challenges in accessing resources to fuel Nigeria’s gas initiatives.

Nigeria currently holds over 200 trillion cubic feet (TCF) of proven gas reserves, the largest in Africa, yet low financing continues to stymie project development, Eyesan noted.

The country has positioned compressed natural gas as its transition fuel as part of its “Decade of Gas” initiative, aimed at boosting domestic utilization of gas resources.

However, balancing the need for decarbonization with resolving energy poverty remains a complex challenge, she added.

At the 2024 ADIPEC conference, themed around the transformative role of artificial intelligence and decarbonization in oil and gas, Eyesan also reaffirmed Nigeria’s commitment to the Oil and Gas Climate Initiative (OGCI), a collaboration of 12 leading global oil and gas companies dedicated to combating climate change.

A key target within this initiative is Nigeria’s ambitious goal to reduce gas flaring significantly by 2030.

As of January 1, 2024, Nigeria’s gas reserves reached 209.26 TCF, underscoring its position as the world’s eighth-largest gas holder.