Improving Natural Gas Utilization in Nigeria: An Analysis of the Domestic Gas Industry From 2010-2022

Abstract

Abstract This paper undertakes a comprehensive exploration of natural gas utilization in Nigeria over a twenty-year period (2010-2022), with a focus on forecasting future trends in demand, production, and consumption. The primary objective is to identify challenges and propose strategic measures for enhancing the effective use of Nigeria's abundant natural gas resources. The study adopts a forecast method, leveraging the Scrapy web scraping tool for systematic data collection from official websites. Validation processes ensure the accuracy and reliability of the collected data, maintaining ethical considerations outlined by website terms of use. The analysis employs trend analysis, utilizing a linear trend equation to forecast yearly demand. The process involves rigorous equations, validation checks, and reliability assessments, presenting findings through tables and charts. Findings reveal a paradox wherein Nigeria's vast natural gas reserves fail to effectively address energy shortfalls. The power sector, a significant consumer of natural gas, faces a liquidity crisis impacting gas pricing and per-capita electricity generation. The study concludes that strategic investments, policy consistency, and regulatory enhancements are critical for maximizing the benefits of natural gas utilization. Economic implications include potential revenue generation, job creation, and trade balance improvement. The paper emphasizes the need for Nigeria to emerge as a regional leader in natural gas utilization, outlining a holistic vision. It calls for increased environmental considerations, awareness campaigns, and diversification of natural gas applications beyond electricity generation. The study recommends further research on greenhouse gas emission reduction, a critical analysis of the legal framework in the petroleum industry and addressing gas flaring as a wasteful practice of natural resources. The study identified the challenges hindering the effective utilization of natural gas as: inadequate infrastructure, poor investment, policy inconsistencies, and regulatory shortcomings. However, this study sheds light on the potential solutions that can lead to a transformative change in Nigeria's energy landscape. This study also developed a roadmap towards the optimization of gas production from assets within Nigeria.