MONETIZING STRANDED GAS RESERVES IN NIGERIA

Stranded natural gas has a huge economic implications for Nigeria since there are 184 TCF stranded gas reserves in the country. Oil currently accounts for over 90 percent of Nigeria’s foreign exchange earnings, there is therefore, hope for increased revenue from natural gas, if the gas being flared is monetized. Monetizing stranded gas reserves requires access to distribution infrastructure. It becomes necessary and appropriate for Nigeria to put in place these infrastructure as to develop her vast stranded natural gas reserves to serve her economy, strengthen regional cooperation, and meet expanding demand in the world market. This paper presents current technologies for monetizing stranded gas, and assessment of Nigeria’s achievements in monetizing stranded natural gas reserves. The monetization technologies and projects reviewed are liquefied natural gas (LNG), gas-to-liquids (GTL), compressed natural gas (CNG), gas-to-wire (gas-fired power generation), and gas-to-solid. Nigeria’s achievements in monetizing stranded gas include the Nigeria LNG plant, Brass LNG plant, Escravos GTL plant, Bonny Non-Associated Gas plant, West Niger Delta LNG plant, Olokola LNG project, Nigeria Gas Company, and thermal power plants. Some of these projects have not reached operational stage, even those that have reached are partially in operation. Some of those that were fully operational, were shut down due to poor maintenance and gas supply. The shutdown of these plants created a drop in power generation in the country. Hence, gas utilization in Nigeria is still inadequate when compared to other oil and gas producing countries of the World. Possibilities of monetizing natural stranded gas in future are suggested for Nigeria to serve her economy, have a steady and enviable electricity generation, contribute to global greenhouse gas (GHG) reduction, and meet expanding energy and petrochemical demands in the world market. These possibilities include natural gas storage (to minimize gas flaring and enhance oil recovery), improved gas-fired power generation, dimethyl ether (DME), and gas-to-ethylene syntheses to mention just a few.