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๐Ÿ‡ณ๐Ÿ‡ฌ Nigeria /Energy & Infrastructure

Domestic gas demand surges as NUPRC, NLNG push supply expansion

From The Punch · (5m ago) English

Summarized and contextualized by DistantNews.

TLDR

  • Nigeria's oil and gas regulators are intensifying efforts to boost domestic gas supply in response to surging demand.
  • The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is implementing reforms to increase gas utilization and remove bottlenecks in the upstream sector.
  • Nigeria LNG Limited is now dedicating 100% of its LPG production to the local market due to significantly expanded domestic demand.

Nigeria is taking decisive steps to harness its vast gas resources for domestic consumption, a move that signals a significant shift in energy policy. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and Nigeria LNG Limited are at the forefront of this initiative, working to ensure that the nation's growing demand for gas, particularly cooking gas, is met.

We are deliberately repositioning the Commission as a business enabler. Through our monthly stakeholder engagements, we X-ray industry performance and resolve issues proactively to ensure they do not escalate.

โ€” Mrs Oritsemeyiwa EyesanThe NUPRC Chief Executive explained the commission's strategy to facilitate business and address industry challenges.

NUPRC Chief Executive, Mrs. Oritsemeyiwa Eyesan, emphasized the commission's role as a business enabler, accelerating regulatory reforms aligned with the Petroleum Industry Act. This proactive approach aims to remove obstacles and improve the ease of doing business, fostering investor confidence and encouraging more final investment decisions. The "Decade of Gas" initiative is proving to be more than just an aspiration; it's a practical framework yielding tangible results in domestic gas utilization.

The Decade of Gas is not aspirational; it is a practical framework for expanding domestic utilisation while strengthening export capacity.

โ€” Mrs Oritsemeyiwa EyesanThe NUPRC Chief Executive highlighted the practical implementation of the government's gas initiative.

Nigeria LNG Limited's decision to commit 100% of its Liquefied Petroleum Gas (LPG) production to the domestic market is a testament to the surging local demand. This strategic pivot prioritizes Nigeria over export markets, a crucial intervention to deepen gas penetration and stabilize supply within the country. This development is particularly significant for millions of Nigerian households relying on LPG for cooking, offering a potential buffer against price volatility and supply shortages.

As government continues to be responsive, operators must demonstrate reciprocity through performance, compliance, and investment discipline.

โ€” Mrs Oritsemeyiwa EyesanThe NUPRC Chief Executive urged industry operators to match government efforts with commitment and compliance.

While international coverage might focus on Nigeria's oil and gas exports, this domestic focus is a critical development for the nation's energy security and economic self-sufficiency. It reflects a government and industry commitment to leveraging natural resources for the direct benefit of its citizens, moving beyond a purely export-oriented model. The success of these initiatives will be key to Nigeria's broader economic diversification and industrial growth.

Today, 100 per cent of our LPG production is dedicated to the domestic market, not due to reduced output, but because demand has expanded significantly.

โ€” Mr Adeleye FaladeThe NLNG Managing Director explained the company's decision to prioritize the domestic market due to increased demand.
DistantNews Editorial

Originally published by The Punch. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.