By Muhammad Mamman
Nigeria’s natural gas production has climbed to its highest levels in years, even as gas flaring – one of the country’s most pressing environmental challenges – continues to decline, according to new data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
In July, daily gas production averaged 7.59 billion standard cubic feet per day (BSCFD), an increase of nearly 9 percent compared to 2024 levels. At the same time, gas flaring fell to 7.16 percent, down from 7.55 percent a year earlier.
The regulator says the twin achievement reflects its push to grow output while advancing Nigeria’s commitment to eliminate routine flaring by 2030.
“The commission has embarked on gas reduction programmes such as the Nigerian Gas Flare Commercialisation Programme (NGFCP), alongside decarbonisation and carbon capture initiatives,” NUPRC said in a statement on Saturday.
Push for zero flare
Gas flaring – the burning of gas released during oil production – has long been the cheaper option for oil companies, who often prefer to pay penalties rather than invest in infrastructure to capture and commercialise the gas.
To reverse this, Nigeria launched the NGFCP in 2016, relaunching it in 2022 after delays caused by the COVID-19 pandemic. Last year, 42 companies were awarded rights to develop 49 flare sites across the country.
The initiative feeds into Nigeria’s broader climate pledges: zero routine flaring by 2030 and net zero emissions by 2060.
Domestic and export balance
NUPRC data show that in July, 35.9 percent of gas was exported, while 27.8 percent went to the domestic market and 29.1 percent was used for field and plant operations, including reinjection and fuel.
Domestic Gas Delivery Obligation (DGDO) compliance also improved, reaching 72.5 percent in July, up from 71.8 percent in June.
Powering homes and industries
Gas-to-Power supply – a key driver of Nigeria’s electricity generation – rose to 862.86 million standard cubic feet per day (MMSCF/D) in July, the highest in three months.
From January to July, Gas-to-Power averaged over 830 MMSCF/D, reflecting steady reliance on gas for electricity despite ongoing supply constraints in Nigeria’s power sector.
Contract breakdown
During the review period, 63 percent of gas output came from marginal sole-risk operators, while production-sharing contracts (PSCs) accounted for 24 percent. Joint ventures contributed 10 percent, and sole-risk operators 3 percent.
This format mirrors Al Jazeera’s economic/environment reporting style: strong lead, data-driven analysis, bold subheadings, historical context, and global relevance (climate, energy transition).
