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Fare rate drops to three-year low
From Adanna Nnamani, Abuja
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has disclosed that the country’s gas production recorded a boost in July 2025, averaging 7.59 billion standard cubic feet per day (BSCFD).
The figure represents an 8.58 per cent increase compared with the 6.99 BSCFD achieved in 2024, and a 9.84 per cent rise over the 6.91 BSCFD posted in 2023, underscoring steady growth in the nation’s gas sector.
At the same time, gas flaring fell to a three-year low of 7.16 per cent in July 2025, down from 7.55 per cent in 2024 and 7.38 per cent in the corresponding period of 2023.
NUPRC, in the statement signed by its Head, Media and Strategic Communications, Eniola Akinkuotu at the weekend, attributed the dual achievement to its ongoing programmes targeted at boosting production while cutting flaring in line with Nigeria’s commitment to end routine gas flaring by 2030.
In terms of Domestic Gas Delivery Obligation (DGDO), the sector delivered 72.5 per cent in July 2025, slightly higher than the 71.8 per cent recorded in June. Monthly compliance has remained relatively stable this year, ranging between 70.8 per cent and 73.7 per cent.
Breakdown by contract type shows that Marginal Sole Risk operators (formerly Marginal Fields) accounted for 63 per cent of total production in July, while Production Sharing Contracts (PSCs) contributed 24 per cent. Joint Venture (JV) operations delivered 10 per cent, and Sole Risk operators accounted for 3 per cent.
Utilisation data indicates that as of July, 35.88 per cent of gas produced was channelled to export sales, 27.82 per cent to the domestic market, while 29.13 per cent was used for field and plant operations, including fuel, gas lifting, and reinjection for pressure maintenance.
Meanwhile, Gas-to-Power supply hit its strongest level in three months, with average daily deliveries rising 3.48 per cent month-on-month, from 833.86 million standard cubic feet per day (MMSCF/D) in June to 862.86 MMSCF/D in July.
Over the first seven months of 2025, Gas-to-Power supply averaged 780.23 MMSCF/D in January, 849.37 MMSCF/D in February, 886.83 MMSCF/D in March, 886.7 MMSCF/D in April, 837.64 MMSCF/D in May, 833.86 MMSCF/D in June, and 862.86 MMSCF/D in July.
The reduction in gas flare was recorded despite the steady increase in gas production which reflects the Commission’s commitment to end routine gas flaring by 2030.
“The Commission has embarked on gas reduction programmes like the Nigerian Gas Flare Commercialisation Programme (NGFCP).
“Other initiatives include developing a Decarbonisation and Sustainability Blueprint, promoting Carbon Capture and Storage (CCS), and integrating sustainability into project planning through the Upstream Petroleum Decarbonisation Template (UPDT),” it said.
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