1 week ago
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With the completion of several new projects in the country, Nigeria will see a rise in domestic gas delivery in 2025, a new report by Bloomfield LP, has indicated.
Titled: “The Nigerian Oil And Gas Sector: 2024 in Review and Outlook for 2025”, the report said its forecast was based, among others, on the completion of Seplat’s Sapele gas processing plant and the Assa North Ohaji South (ANOH) gas project.
“We envisage that in 2025, there will be an increase in gas delivery to the domestic market by the completion of Seplat’s Sapele gas processing plant which is expected to deliver about 85,000,000 cubic feet of gas daily.
“Also, the Assa North Ohaji South (ANOH) gas project is expected to deliver over 300,000,000 cubic feet of gas daily to the domestic market in the fourth quarter and second quarter 2025 respectively. We hope to experience an increment in the supply of processed gas to the domestic market in 2025.”
Besides, it predicted a further drive in growth and the utilisation of Compressed Natural Gas (CNG) for transportation, with the federal government’s target being to increase conversion centres from 170 centres recorded in December 2024 to 500 by the end of 2025.
While the increase will be driven by private investors, Bloomfield said more conversions are expected in the year 2025, in order to meet President Bola Tinubu’s target of 1 million CNG vehicles by 2027.
In addition, the firm mentioned the possibility of amendment of the Petroleum Industry Act (PIA), explaining that while the enactment of PIA was a welcome development in the industry, there are visible lapses, inconsistencies, and flaws in the legislation.
It also foresaw additional divestments by International Oil Companies (IOCs) given the current operating and regulatory environment, in addition to the IOCs’ preferred interests in the deep water and offshore sectors over shallow water and onshore assets.
“In addition, some other private refineries are expected to come on stream in 2025 such as the 12,000 bpd Azikel Petroleum Refinery located in Yenagoa, Bayelsa State and the BUA Refinery located in Akwa lbom State. In general, it is expected that 2025 will see a significant increase in Nigeria’s crude refining capacity.
“We further expect to see a full and continuous deregulation of the downstream sector, as key players will leverage the present competition which in turn reflects on the pricing of oil, especially PMS (petrol).
“Further, in 2025, with the addition of the Dangote Refinery and the expected completion of the rehabilitation of government-owned refineries, Nigeria is poised to become a potential exporter of refined petroleum products. A reduction or stoppage of the importation of refined petroleum products will positively translate to a reduction in the landing cost of refined petroleum products and possibly in the price of oil.
“Consequently, it is our opinion that the regulatory authorities will issue more regulations in 2025 and most likely finalise some of the regulations that are still in draft form.
“For instance, it is expected that in 2025, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) wilI finalise the draft Midstream and Downstream Petroleum Operations Regulations 2024 which is meant to revoke the Midstream and Downstream Petroleum Operations Regulations 2023,” the report said.
However, while listing booby traps to avoid in 2025, it explained that there were significant risks and challenges that may surface, and if not addressed might stagger the projections for the sector.
According to the report, among others, these include: Oil theft and vandalism of pipelines as well as economic and currency instability, given the dollarisation of operations in the oil and gas industry.
Emmanuel Addeh
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