NIGERIA’S gas reserves have peaked at about 118 trillion standard cubic feet (SCF), a figure that now places the country as the 7th most endowed gas nation in global ranking.

The new figure was re­leased at the weekend by the Department of Petroleum Resources (DPR) which regulates the oil and gas in­dustry and represents a great leap from the previous 166 standard trillion cubic feet. Deputy Director, Gas Moni­toring and Regulation, DPR Engr. Antigha Ekaluo, dis­closed that the latest reserves figures has placed Nigeria 7th in the world and number one in Africa in gas reserves base as at January 1, 2015.

Ekaluo stated this in his presentation titled “Har­nessing and Monetizing the Potential of Stranded Gas Fields: A Key Enabler for National and Economic Growth”, at the 16th An­nual General Meeting on Natural Gas Business Forum organized by Nigerian Gas Association(NGA) in Lagos.

He said Nigeria recorded 188 trillion cubic feet of gas as at January 1, 2015, saying that out of the figure recorded, some volumes are stranded and reserves life index for the volume been quoted stands at 79 years in the country as at January 1, 2015. According to him, gas sector aspires to grow the gas resource base aggressively in order to catalyze growth and grow the economy as de­livered gas attained at least threefold increase this year.

He hinted that a strategic framework for gas mon­etization across the gas value chain for a wholly competitive, market driven domestic gas sector is being implemented. However, he described stranded gas as gas that is available but not developed, due to economic and physical constraints, adding that gas reserves in remote fields are uneco­nomical for monetization. “Factors militating against gas stranded include CA­PEX/OPEX stifling growth of gas infrastructure, imma­ture and sub-commercial do­mestic market, disincentive fiscal terms, high risk and low return, coupled with the absence of robust legislative and commercial framework for gas.”
Speaking on the way for­ward on gas stranded, he said there is urgent need to facili­tate competitive fiscal terms and pricing for gas as well as facilitate third party access to stranded gas.

More so, he maintained that there is need to adopt new technologies geared towards harnessing stranded gas, deepen market pen­etration in order to sustain growth, while also address­ing regulatory and commer­cial frame issues to have ac­cess to gas value chain.

In his welcome address, the President of Nigerian Gas Association (NGA), Mr. Bolaji Osunsanya, said that the association since its inception has garnered the government’s support for business with respect to creating a more conducive business environment, as well as fostering the enact­ment of laws and policies that have enabled gas to be at par with oil as a natural re­source geared towards value creation for the Nigerian economy.