In 2021, the Nigerian National Petroleum Company Limited (NNPCL) achieved substantial success in marketing a significant volume of Liquefied Petroleum Gas (LPG), Natural Gas Liquids (NGL), Gas-to-Liquid (GTL), and NLNG feedstock in the international market.
This is according to the 2021 Oil and Gas Report by the Nigerian Extractives Industries Transparency Initiative (NEITI).
According to the report, the total volume of LPG/NGL/GTL and NLNG Feedstock lifted and sold amounted to 1,528,477 metric tons, valued at $861.24 million. Simultaneously, an additional 422,295,718 British Thermal Units (btu) were traded globally, valued at $704.51 million.
Also, 70,013 metric tons of NGL, equivalent to $40.10 million, were successfully sold within the local market. This significant market presence translated into substantial revenue, as evidenced by the actual gas sales receipts for the year, totalling $750.86 million and N17.18 billion ($42.99 million).
Apart from effectively managing revenue streams from 2021 export crude, domestic crude sales, export gas, and domestic gas sales on behalf of the Federation, the NNPCL also handled additional financial transactions amounting to $2.16 billion within the same year.
However, there were discrepancies in the remittances to the Federation Account. The sum of N169.039 billion and $722.596 million consisting of the Naira component of transportation fee and miscellaneous revenue as well as NLNG dividend respectively were not remitted to the Federation Account.
Gas production
The peak in gas production over the past five years occurred in 2017, reaching an impressive volume of 3,499,695 million standard cubic feet (mmscf).
However, this peak was followed by a sharp decline to 2,909,144 mmscf in 2018.
Subsequently, there was a modest increase to 3,047,507 mmscf in 2019 before a decline once more, resulting in a production of 3,013,640 mmscf in 2020. The downward trajectory continued into 2021, witnessing a notable 8.96% reduction, culminating in a production volume of 2,743,700.32 mmscf.
In the most recent year, 2021, the daily average production stood at an impressive 7,516.99 mmscf.
The total gas entitlement for the Federation, encompassing both Joint Venture and Alternative Funding Arrangements, amounted to a substantial 862,313.50 mmscf.
Notably, Shell Petroleum Development Company (SPDC) emerged as the leading Joint Venture gas producer, contributing an impressive 583,697.87 mmscf to the overall volume.
Conversely, Seplat Petroleum Development Company held the position of the least producer in the Joint Venture category, contributing a modest 1,457.30 mmscf.
Note that gas utilization in 2021 amounted to a substantial volume of 2,743,700.20 mmscf.
This total can be categorized into distinct segments based on utilization:
- 249,934.38 mmscf (9%) attributed to flared gas
- 575,381.68 mmscf (21%) to reinjected gas
- 340,381.85 mmscf (12%) to fuel gas
- 1,534,033.72 mmscf (55%) dedicated to gas sold
- 43,968.60 mmscf (2%) to unaccounted portions.
