Investor Presentaiton
NIGERIA'S GAS MARKET SET FOR MASSIVE EXPANSION
Strong demand growth expected as country transitions to gas-fired power generation and increases capacity
DEMAND FOR GAS WILL GROW STRONGLY
> Nigeria has huge resources of natural gas, estimated at 188
Tcf, or 5.3 trillion cubic metres, about 2% of global gas
reserves and 37% of known African gas reserves
> But Nigeria's gas industry is relatively undeveloped
> Nigeria flares as much gas as it uses for electricity generation,
but this gas can be captured and put to economic use under
the Flares Out initiative
> The 2017 National Gas Policy, which replaced the 2008 Gas
Master Plan, set out to transition Nigeria from being a crude oil
export-based economy to becoming an attractive gas-based
industrial economy
> Government policy is also focused on addressing the
undersupply of gas and extending access to electricity (to
reach 90% of population by 2030)
> Nexant forecasts Nigeria's gas demand to grow by c. 20 Bcm
by 2035, with most growth in the power sector
> Population forecast to grow to 450m by 2050
HOW NIGERIA USES GAS AT PRESENT
41%
5%
11%
4%
24%
■ Fuel gas
■Gas lift make-up
■Gas reinjection
■HGL/LPG feed gas
■Local supply (power)
1%
2%
■Local supply (other)
12%
■ Gas export
■ Flared gas
25
SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC | INVESTOR PRESENTATION
Source: Nigerian Oil & Gas Industry Annual Report, Department of Natural Resources (2018)View entire presentation