Unlocking the Potential of Associated Gas in Nigeria: Flaring Reduction, and Monetization

Abstract

Nigeria remains one of the world’s largest Gas flaring countries, with over 2.5 billion standard cubic feet of associated Gas flared daily, resulting in significant economic loss and severe environmental and health impacts. This paper critically examines Nigeria’s associated Gas landscape, emphasizing the environmental consequences of flaring and the lost economic opportunities from unutilized Gas. It identifies key barriers to effective Gas utilization, including inadequate infrastructure, policy enforcement weaknesses, technological and financial constraints. The study further evaluates emerging monetization pathways such as Floating Liquefied Natural Gas (FLNG), mini-LNG, Compressed Natural Gas (CNG) for transportation, and Gas-to-Liquids (GTL), highlighting their potential to transform Nigeria’s Gas sector. Finally, policy recommendations and the roles of diverse stakeholders are proposed to accelerate associated Gas commercialization, reduce flaring, and support Nigeria’s energy transition goals. By addressing these challenges with integrated solutions, Nigeria can convert its associated Gas liabilities into valuable assets, fostering sustainable development and environmental stewardship.