Nigeria is poised for a substantial increase in domestic gas delivery in 2025, driven by several major energy projects, according to a recent report by Bloomfield LP. The report, titled The Nigerian Oil and Gas Sector: 2024 in Review and Outlook for 2025, highlights key developments in the sector that will shape the country’s energy landscape in the coming year.
Central to the forecasted increase in gas supply are the Seplat Sapele gas processing plant and the Assa North Ohaji South (ANOH) gas project. The Sapele plant is expected to deliver approximately 85 million cubic feet of gas daily, while the ANOH project, set for completion in the second and fourth quarters of 2025, will contribute over 300 million cubic feet daily to Nigeria’s domestic market.
Bloomfield LP anticipates a continued rise in the adoption of Compressed Natural Gas (CNG) for transportation, in line with the federal government’s push to increase conversion centres from 170 in December 2024 to 500 by the end of 2025. This expansion is expected to support President Bola Tinubu’s ambitious target of one million CNG vehicles by 2027. The expansion will largely be driven by private investors, according to the report.
Additionally, the report suggests that the Petroleum Industry Act (PIA) may see amendments to address perceived flaws and inconsistencies within the current legislation. While the PIA has been a step forward for the industry, Bloomfield LP identified areas for improvement to ensure long-term industry growth.
In a broader context, the report also predicts ongoing divestments by International Oil Companies (IOCs), as these companies continue to favor deep-water and offshore assets over shallow water and onshore investments. This trend is expected to be further compounded by the current operating and regulatory environment in Nigeria.
Nigeria’s refining capacity is also set to grow significantly in 2025. The Azikel Petroleum Refinery, with a 12,000-barrel-per-day capacity, and the BUA Refinery in Akwa Ibom are among the private refineries expected to come online. Together with the completion of the Dangote Refinery and the rehabilitation of state-owned refineries, Nigeria is on track to become a net exporter of refined petroleum products in the near future, which will also reduce the country’s dependence on imports and potentially lower fuel prices.
Bloomfield LP anticipates the full deregulation of the downstream sector, with increased competition driving more favorable oil pricing, particularly for Premium Motor Spirit (PMS). The report further highlights the likely finalization of regulations by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), including the Midstream and Downstream Petroleum Operations Regulations 2024.
However, the report also cautions about potential risks that could hinder the sector’s progress, including the persistent challenges of oil theft, pipeline vandalism, and the ongoing economic and currency instability that stems from the dollarization of the oil and gas industry.
As Nigeria looks toward 2025, the energy sector is poised for significant growth, but industry stakeholders will need to navigate these risks to fully realize the country’s potential as a leading player in the global energy market.
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