Africa in Perspective: Natural gas offers Nigeria huge potential, challenge

The Nigerian gas industry offers huge challenges and potential. Click here to enlarge imageWith a reserve base of 130 tcf and a 2.6% share of world reserves, Nigeria ranks tenth among gas-bearing nations. The country's gas reserves-to-production ratio is estimated to be about 120 years. Oil's ratio is only 35 years, so Nigeria is increasingly considered a gas province.Reserves are split nearly evenly between associated and nonassociated gas. However, exploitation so far has been concentrated on associated gas, which accounts for 70% of total gas production. Only 35% of the associated gas produced is gainfully used. The other 65% is flared in the oil fields.With increasing focus o...

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