Nigeria Sees Boost in Gas Output as Local Demand Reaches 2.18 Billion Cubic Feet Per Day, According to NUPRC Data

Nigeria's daily natural gas production climbed to 7.93 billion standard cubic feet per day in May 2026, fueled by a surge in domestic demand and the expanding contribution of non-associated gas production, as indicated by the latest industry data.

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This growth represents a 0.63 per cent year-on-year increase from the 7.88 billion standard cubic feet per day recorded in the same period of 2025, underscoring the country's progress in boosting its gas output.

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A detailed breakdown of the production data for May, as published on the Nigerian Upstream Petroleum Regulatory Commission website, reveals that Associated Gas accounted for 3.96 billion standard cubic feet per day, while Non-Associated Gas contributed 3.98 billion standard cubic feet per day.

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This shift highlights the increasing importance of non-associated gas in the production mix, reflecting the maturation of dedicated gas development initiatives and their growing impact on the sector.

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On a month-on-month basis, gas production experienced a marginal decline of 0.12 per cent from 7.94 billion standard cubic feet per day in April, a minor setback in an otherwise positive trend.

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Over the past five months, gas production has exhibited a steady upward trajectory, rising from 7.80 billion standard cubic feet per day in January to 7.81 billion standard cubic feet per day in February, 7.85 billion standard cubic feet per day in March, and 7.94 billion standard cubic feet per day in April.

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In terms of gas utilisation during this period, export sales dropped from 4.13 billion standard cubic feet per day to 3.07 billion standard cubic feet per day, accounting for 40 per cent of total production, while sales to the domestic market increased from 2.03 billion standard cubic feet per day to 2.18 billion standard cubic feet per day.

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This increase in domestic sales, representing 26.6 per cent of total gas utilisation, reflects ongoing efforts to meet local supply obligations and expand the domestic market.

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As the power, industrial, and gas-based manufacturing sectors continue to expand under the national gas agenda, the potential for further growth in the sector remains significant, driven by increasing demand and strategic investments.

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The report also shows that 2.11 billion standard cubic feet per day, representing 26.5 per cent of total production, was allocated to own-use, while 0.57 billion standard cubic feet per day, or 6.9 per cent, was flared, highlighting the country's commitment to ending routine gas flaring by 2030.

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Year-to-date production remained firm at an average of 7.87 billion standard cubic feet per day, up from 7.82 billion standard cubic feet per day recorded in the first quarter, and increased further to 7.94 billion standard cubic feet per day across April and May 2026.

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Further analysis of the data revealed that Nigeria utilised about 92 per cent of the natural gas produced in the first four months of 2026, indicating steady progress in the country's efforts to curb gas flaring and maximise the economic value of its vast gas reserves.

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A total of 947.78 billion standard cubic feet of gas was produced between January and April 2026, with 872.69 billion standard cubic feet channelled towards domestic supply, exports, and field operations, while about 57.34 billion standard cubic feet were flared.

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The provisional data, subject to quarterly reconciliation, showed that Nigeria produced 241.71 billion standard cubic feet of gas in January, comprising 118.72 billion standard cubic feet of Associated Gas and 122.99 billion standard cubic feet of Non-Associated Gas.

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Out of the January production volume, 59.09 billion standard cubic feet were consumed as field use, 65.58 billion standard cubic feet were supplied to the domestic market, and 96.24 billion standard cubic feet were exported, resulting in a utilisation rate of 91.4 per cent.

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In February, total gas production stood at 218.70 billion standard cubic feet, with 203.42 billion standard cubic feet utilised, accounting for 93 per cent of output, and 14.09 billion standard cubic feet flared, representing 6.44 per cent of production.

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In March, total production rose to 243.28 billion standard cubic feet, with 226.79 billion standard cubic feet, or 93.2 per cent, utilised, and in April, Nigeria recorded total gas production of 238.08 billion standard cubic feet, with 221.57 billion standard cubic feet utilised, representing 93.1 per cent of output.

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Domestic gas supply remained strong throughout the review period, with sales standing at 65.58 billion standard cubic feet in January, 59.83 billion standard cubic feet in February, 60.58 billion standard cubic feet in March, and 60.88 billion standard cubic feet in April.

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Export volumes also maintained significant levels, reflecting Nigeria's position in the global gas market, with the country exporting 96.24 billion standard cubic feet of gas in January, 84.16 billion standard cubic feet in February, 98.49 billion standard cubic feet in March, and 98.69 billion standard cubic feet in April.

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The performance aligns with the Federal Government's commitment to commercialise natural gas resources under the "Decade of Gas" initiative and reduce routine gas flaring, which has long been criticised for its environmental and economic implications.

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Nigeria possesses one of Africa's largest proven natural gas reserves, estimated at more than 200 trillion cubic feet, but inadequate infrastructure, limited domestic utilisation capacity, and decades of routine flaring have constrained the country's ability to maximise value from the resource.