March 6, 2025/CSL Research
According to the January 2025 Gas Production Status Report by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Nigeria’s total gas production for the month reached 232,234.33 million standard cubic feet (MMscf), reflecting a 5.07% year-on-year (y/y) increase from 221,026.25 MMscf recorded in January 2024.
Of this total, Associated Gas (AG)—natural gas produced alongside crude oil—accounted for 121,999.02 MMscf, down from 128,281.80 MMscf in the same period of 2024. In contrast, Non-Associated Gas (NAG)—gas produced from conventional fields independent of crude oil—rose 18.86% y/y to 110,235.31 MMscf, surpassing the 100 MMscf mark for the first time since March 2022.
In January 2025, gas production utilized for field use totalled 66,810.01 million standard cubic feet (MMscf), up from 64,028.62 MMscf in January 2024. Domestic sales saw a significant 36.07% year-on-year (y/y) increase, rising to 67,095.24 MMscf from 49,310.73 MMscf in the previous year. Conversely, export sales declined by 8.76% y/y, falling to 81,370.89 MMscf from 89,181.55 MMscf in January 2024. As a result, the total volume of gas utilized in January 2025 reached 215,276.14 MMscf, accounting for 92.70% of total production, compared to 202,520.90 MMscf (91.63%) in the same period last year. Meanwhile, gas flaring in January 2025 dropped to 16,958.19 MMscf (7.30% of total production), down from 18,308.19 MMscf (8.28%) in January 2024. In line with the trend since October 2024, gas shrinkage—the loss of gas from the transportation network—was nil in January 2025, compared to 197.16 MMscf recorded in January 2024.
The recent improvement in domestic gas production can be attributed to the positive impact of government initiatives, particularly the Decade of Gas Initiative launched in 2021. This strategy focuses on key areas such as transition to compressed natural gas (CNG) for transportation, switch from kerosene and charcoal to liquefied petroleum gas (LPG) for cooking, increased gas utilization in power generation and development of critical gas infrastructure, including pipelines and storage facilities. More recently, the Federal Government implemented a ban on the export of locally produced cooking gas to prioritize domestic supply and address the rising cost of LPG. This policy is supported by a new pricing framework based on local production costs. Early signs suggest that these measures are yielding positive near-term results, as domestic gas sales have shown a steady upward trend since the policy took effect in November 2024.
Click here to download full report: CSL Nigeria Daily – 06 March 2025 – Energy.pdf
