The federal government says the estimated performance of Nigeria’s domestic gas supply obligation rose by 14.14 percent in 2022.
Farouk Ahmed, NMDPRA‘s chief executive officer (CEO), spoke in Abuja at the 2023 domestic gas demand requirements (DGDR) workshop.
He said efforts were being intensified to further grow the country’s gas supply volumes in 2022.
He said Nigeria’s gas demand requirement also rose marginally by 5.9 percent to 250 million standard cubic feet per day in 2022.
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“As at end of September 2021, the estimated performance of the domestic gas supply obligation was 64.8 per cent compared to 50.66 per cent achieved in 2020 (comparing annual total domestic supply obligation allocation to actual daily supply met),” he said.
“The increased performance of 14 per cent in the preceding domestic gas year can be majorly attributed to the concerted efforts implemented by the regulator and all our stakeholders towards enhancing the performance of the market.”
However, he noted that despite the improved performance in 2021, the domestic gas market continued to experience significant challenges.
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He listed the challenges to include infrastructural capacity constraints, payment assurance issues and outstanding legacy debts of gas supplied to the power sector.
Other constraints, he said, are the poor performance of sanctity of contracts, constraints on the evacuation of generated power and low investment flow into the sector.
Ahmed assured that necessary preparations had been made to ensure that this year’s domestic gas demand requirements are coordinated in a productive and efficient manner.
On his part, Jennis Anyanwu, manager, gas production and flare monitoring of NUPRC, expressed optimism that Nigeria would meet the 12.2 billion standard cubic feet target as set in the Decade of Gas initiative.
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“Certainly, Nigeria can meet the deadlines set for the decade of gas. There is a high-powered political commitment to ensure that happens,” he said.
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