Proven gas deposits rise as price of cooking gas skyrockets

Proven gas deposits in Nigeria has moved to 206.53 trillion cubic feet (tcf), the Department of Petroleum Resources (DPR) said weekend in Abuja. This is as cooking gas, a bye product of the gas deposit rises by over 53 per cent to close toN5,000 per 12KG gas.

Speaking at the Nigeria International Petroleum Summit, Director of DPR, Auwalu Sarki disclosed that indigenous oil and gas companies are now contributing as much as 33 per cent to the nation’s crude oil reserves and about 30 per cent of gas reserves.

While the companies contribution to the reserves was less than 10 million barrels in 2005, it has grown significantly to about 62 million barrels in 2020.

Speaking on the gas reserves, Auwalu attributed the growth to recent efforts being made on gas exploration in the country, especially the ‘Decade of Gas Initiative’.

The Nigerian government had last year put Nigeria’s total gas reserves at 203.16 trillion cubic feet (TCF), representing a marginal increase of 1.16tcf or 0.57 per cent from the 202tcf recorded in 2019. The recent increase implies a growth of over 3 trillion.

‘Nigeria attained the target of 200tcf of natural gas reserves by the Reserve Declaration as at Jan.1, 2019, before the 2020 target

‘Thereafter, government set a target to attain a Reserve Position of 2020tcf by 2030,’ Auwalu said.

He noted that independent companies are driving value addition to gas, adding that acquisition of divested assets as well as accelerated appraisal and development efforts are other driving factors.

To him, the country is already gaining from the deliberate national efforts to boost indigenous participation in the sector.

The Chairman of Nigeria Gas Association and Managing Director, Shell Nigeria Gas, Ed Ubong, who spoke at the event said gas only accounts for five per cent of Africa energy mix.

But between 2020 and June 2021, the price of a 12KG gas has move from about N3,200 to close to N5,000.

Analysts say, the increase in the domestic production of gas should have robbed off positively on the price of cooking gas to ameliorate the sufferings of the masses.

Earlier at the event, the Minister of State for Petroleum, Timipre Sylva had said there was need for the industry to move beyond ‘lips service’ on gas development.