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Nigeria’s Domestic Gas Supply Rises to 2.05 Bcf/Day as NUPRC Introduces Gas Swap Framework

 

 

Nigeria’s average domestic natural gas supply increased to 2.05 billion cubic feet per day (Bcf/d) in the first half of 2026, as the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) unveiled a Gas Swap Framework designed to close supply gaps and improve compliance with Domestic Gas Delivery Obligations (DGDO).

The Commission Chief Executive of NUPRC, Oritsemeyiwa Eyesan, disclosed the figures at a stakeholders’ workshop on the proposed Gas Swap Framework held in Abuja, where industry participants reviewed the initiative aimed at strengthening gas supply to Nigeria’s domestic market.

Represented by the Executive Commissioner for Development and Production, Enorense Amadasu, Eyesan said the workshop was convened to deepen industry understanding of the framework and obtain stakeholder input ahead of implementation.

According to NUPRC, Nigeria recorded an average domestic gas delivery of 2.05 Bcf/d between January and June 2026 against a Domestic Gas Delivery Obligation allocation of 3.16 Bcf/d, representing about 65% compliance.

The Commission revealed that of the country’s 63 producing companies, only 27 were allocated DGDO volumes, while 23 producers were actively supplying gas to the domestic market during the review period.

“The year-to-date June 2026 data shows that a broader allocation base does not automatically translate into actual delivery,” Eyesan said.

She noted that the shortfall highlights the need for practical and market-driven solutions capable of converting allocated gas volumes into physical deliveries for domestic consume

To address the supply gap, NUPRC is proposing a Gas Swap Framework that would allow producers unable to deliver gas because of infrastructure constraints to meet their obligations through other operators with available transportation and delivery capacity.

Under the framework, companies with stranded gas resources can exchange delivery obligations with operators that have pipeline access and processing infrastructure, ensuring that domestic buyers receive the required gas supplies.

“The framework provides a practical solution for operators whose gas is stranded or difficult to evacuate to still comply with their Domestic Gas Delivery Obligations,” Eyesan said.

She added that the initiative would improve utilisation of existing gas infrastructure, increase supplies to the power sector, and enhance confidence in Nigeria’s domestic gas market.

NUPRC described the Domestic Gas Delivery Obligation as one of the country’s most important regulatory tools for ensuring that Nigeria’s abundant natural gas resources support economic growth, electricity generation and industrial development.

The Commission said successful implementation of the Gas Swap Framework would transform regulatory obligations into actual gas deliveries, strengthen the domestic gas value chain and accelerate the Federal Government’s gas-to-power and gas-based industrialisation agenda.

The proposed framework is expected to reduce infrastructure bottlenecks, improve market efficiency and help Nigeria maximise the economic value of its natural gas resources while supporting long-term energy security.

 

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