Natural gas in Nigeria

Natural gas in Nigeria

The Federal Republic of Nigeria is located in West Africa in the Guinea Bay and has a total area of ​​924,000 km2. It divides the border of 4,047 kilometers from Benin, Niger, Chad, Cameroon and the coastline is approximately 850 km. Nigeria is the most populated country in continent of Africa. There is also a lot of natural gas in Nigeria.

Nigeria is the 12th largest oil producer in the world and also has the largest natural gas reserves on the continent. The capital-intensive oil sector accounts for 20 percent of gross domestic product, 95 percent of foreign currency and about 65 percent of economical revenues. Natural gas reserves are more than 5 trillion cubic meters and several times more than crude oil reserves. The largest natural gas operator is Nigeria LNG Limited, which began exploration and manufacturing already in 1999. Many Nigerian oil fields, holding primary gas capsules, are soaked and considerable efforts are being made to use excess gas reserves and to prevent flaring.

Natural gas in Nigeria

Other important products and services in Nigeria

In addition to oil and gas, the Federal Republic of Nigeria also has many natural resources that include zinc, coal, gold, tin, bauxite, limestone, niobium, iron ore and lead. The Nigerian economy also has well-developed financial, legal, communications, transport and Nigerian stock exchanges, the second largest in Africa. Later years there has also been an upswing in online services, especially within entertainment and payments. Online casino in Nigeria is on the upswing as well as online payment services and mobile payments. But also telecom, internet service providers and online shopping is growing very fast in Nigeria at the moment.

The dependence of natural resources will decrease in Nigeria, with new payment services and online entertainments, such as online casinos, on the rise. We can of course expect that the natural resources will continue to play an important role of the Nigerian export, but that ecommerce and online services will even out the vast differences creating great opportunities for Nigeria to decrease their reliance on export. Natural gas in Nigeria will of course be an important source of export also going forward.

Nigerian gas export

Nigeria’s role as an important player in the natural gas industry depends on their large base of proven natural gas reserves and their importance as an exporter of natural gas. From 2014, Nigeria had 5,111 billion cubic meters in reserves, but only produces approximately 44 billion cubic meters. Hence, they are only the 19th largest producer of gas, but holds the 9th largest reserve. Nigeria will increase their natural gas production coming years becoming an even stronger player on the international energy market.

Despite not utilizing all of their reserves Nigeria is still one of the top exporters of natural gas in the world. Nigeria is expected to export almost 30 billion cubic meters of liquefied natural gas to almost all continents in the world in 2018. Where Southeast Asia and Japan is the main importer of Nigerian liquefied natural gas tanking more than half of the yearly export, with Japan being the biggest sole importer of Nigerian natural gas. Nigeria also exporting natural gas in the West African Gas Pipeline.