Nigeria’s gas market in 2025 was largely driven by exports, with overseas shipments accounting for the biggest share of total gas utilisation during the year, according to a report by the Nigerian Upstream Petroleum Regulatory Commission.
The data highlight the growing importance of gas exports to Nigeria’s energy trade and foreign exchange earnings, even as domestic utilisation continues to expand.
Total natural gas production in 2025 rose to about 2.71 trillion standard cubic feet (scf), representing an increase from the previous year.
Of this volume, approximately 942.7 billion scf, or close to 35 per cent, was exported, making exports the single largest category of gas utilisation.
This export volume exceeded supplies to the domestic commercial market, which absorbed around 780.6 billion scf during the same period.
The remainder of production was used for field operations and internal energy requirements, bringing overall utilisation to more than 90 per cent of total output.
The dominance of exports reflects Nigeria’s positioning as a key supplier in the global gas and liquefied natural gas (LNG) market, with export flows largely supported by the operations of Nigeria LNG Limited.
Gas exports continued to play a critical role in supporting Nigeria’s external trade balance, particularly at a time when energy commodities remain central to export revenues.
Despite the strong export performance, the report also points to persistent structural challenges within the sector.
Gas flaring remained significant in 2025, with more than 200 billion scf of gas flared over the year, representing a notable loss of potential value and an ongoing environmental concern.
This underscores the need for expanded gas-gathering infrastructure and improved utilisation efficiency.Overall, the 2025 gas market data show a sector increasingly oriented toward exports, while still balancing domestic demand for power generation and industrial use.
The findings reinforce the importance of continued investment in gas infrastructure, regulatory stability under the Petroleum Industry Act, and policies aimed at reducing flaring and strengthening domestic gas utilisation, even as Nigeria maintains its role in international gas markets.
Image Credit: Punch.ng
Source:Punchng.com
