Nigeria needs 4.4bn SCF of gas daily for power, others – NMDPRA | Dailytrust

Nigeria needs 4.4bn SCF of gas daily for power, others – NMDPRA

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has said Nigeria needs 4.4 billion standard cubic feet per day (BSCF/D) to effectively drive the power sector, gas-based industries and the commercial sector.

Daily Trust reports that this means the country would require 1.606 trillion SCF to ensure the three areas operate in one year.

According to a statement from NMDPRA announcing the new Domestic Gas Demand Requirement (DGDR), the requirements were jointly determined by the relevant stakeholders that include gas producing companies, gas transportation companies, gas off-takers and key regulators like the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Electricity Regulatory Commission (NERC).

The authority’s Chief Executive (ACE), Farouk Ahmed, said the requirement was transmitted to NUPRC on Tuesday.

A breakdown of the figure shows the power sector needs 2.324BSCF/D, gas-based industries 1.125BSCF/D while the commercial sector requirement is 1.034 BSCF/D making a total of 4.482 BSCF/D.

For the power sector, at least 24 out of the 27 active power plants depend on gas, and with the new gas obligations, the national electricity grid may optimally generate about 5,000 megawatts (MW) of electricity per day.

In the transmitted document referenced NMDPRA/GMR/DGSU/V.1/34, Ahmed said: “The Determined Domestic Gas Demand Requirement (DGDR) for the strategic sectors for the year 2022 as presented below is transmitted to NUPRC for prescribing and allocating the Domestic Gas Delivery Obligation among all lessees as stipulated in the Petroleum Industry Act (PIA) 2021.”

He also said the document is the 2022 domestic gas demand requirement for the allocation of domestic gas delivery obligations among all lessees as prescribed by the PIA 2021.

Mr Farouk further emphasised that the authority is committed to ensuring gas availability for sustained economic development of Nigeria through power generation and industrialization.

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