… despite output growth, lower flaring, only 27.82% of production reached domestic market

… gas-to-power supply rising to its highest level in three months at 862.86 MMSCF/D

Oredola Adeola

Nigeria’s daily natural gas production stood at 7.59 billion standard cubic feet per day (BSCFD) in July, with Marginal and Sole Risk operators contributing the largest share of output at 63%, followed by Production Sharing Contracts (24%), Joint Ventures (10%), and Sole Risk operators (3%).

This was revealed in a statement issued by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) at the weekend.

However, NUPRC did not provide month-on-month production trends, instead comparing July’s average with historical full-year data.

It noted that gas output rose against the 6.99 BSCF/D recorded in 2024 and 6.91 BSCF/D in 2023, representing year-on-year growth of 8.58% and 9.84% respectively.

Meanwhile, the Nigerian National Petroleum Company Limited (NNPCL) reported slightly higher numbers for the same month.

In its July gas production report, the national oil company put output at 7.72 BSCF/D, up from 7.58 BSCF/D in June 2025.

The NNPCL further broke down volumes, stating that Associated Gas (AG) production stood at 114.045 billion SCF, accounting for 58.73% of total output, while Non-Associated Gas (NAG) production was 80.134 billion SCF, representing 41.27%.

Checks by Advisors Reports revealed that while the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) confirmed average daily output of 7.59 billion standard cubic feet per day (BSCF/D) in July, it did not provide progressive monthly growth data.

Instead, the Commission benchmarked performance against historical averages, noting increases over the 6.99 BSCF/D posted in 2024 and 6.91 BSCF/D in 2023, representing 8.58% and 9.84% growth, respectively.

On its part, the Nigerian National Petroleum Company Limited (NNPCL) gave a slightly higher figure, reporting 7.72 BSCF/D in July 2025, up from 7.58 BSCF/D in June.

According to the national oil company, Associated Gas (AG) accounted for 114.045 billion SCF or 58.73% of total production, while Non-Associated Gas (NAG) contributed 80.134 billion SCF or 41.27%.

The growth trend was linked to a marked decline in flaring, which dropped to 7.16% in July 2025. Officials credited this achievement to policy and project interventions, including the Nigerian Gas Flare Commercialisation Programme (NGFCP), the rollout of a Decarbonisation and Sustainability Blueprint, promotion of Carbon Capture and Storage (CCS) technology, and the integration of sustainability considerations into projects through the Upstream Petroleum Decarbonisation Template (UPDT).

These measures, according to regulators, are repositioning Nigeria’s gas sector to align with global energy transition goals while also maximising revenue from resources that would otherwise have been wasted through flaring.

NUPRC’s data further revealed that only 27.82% of Nigeria’s total gas production in July 2025 was channelled to the domestic market.

The report showed that 35.88% of output was exported, while 29.13% was consumed for field and plant operations (own use).

The balance was not fully accounted for in the Commission’s disclosure.

Within the domestic market share, Gas-to-Power deliveries recorded a notable increase of 3.48% month-on-month, climbing from 833.86 million standard cubic feet per day (MMSCF/D) in June to 862.86 MMSCF/D in July 2025—the highest level in three months.

A review of the trend shows a fluctuating but generally upward movement since the beginning of the year. Gas-to-Power stood at 780.23 MMSCF/D in January, rose to 849.37 MMSCF/D in February, and peaked at 886.83 MMSCF/D and 886.7 MMSCF/D in March and April, respectively.

Supplies averaged 837.64 MMSCF/D in May, before dipping slightly in June to 833.86 MMSCF/D, and rebounding in July.