Field Use, Flaring Gulp 38% of Nigeria’s Gas Output Amid Rising Demand
Emmanuel Addeh in Abuja
Field use and gas flaring together consumed as much as 38 per cent of Nigeria’s total gas output in 2025, highlighting structural challenges across the value chain, data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), has shown.
The development has ensured that Nigeria’s gas sector continues under increasing pressure as inefficiencies in utilisation continue to erode available supply, and as demand for the country’s gas has risen locally and internationally.
Essentially, in gas production, field use refers to the portion of produced natural gas that is consumed within the oil or gas field itself, rather than being sold, exported, or delivered to consumers. It is essentially operational consumption gas used to keep the field running.
It typically includes gas used for: Power generation for equipment and facilities; gas reinjection to maintain reservoir pressure or enhance recovery; fuel for turbines and engines on-site as well as heating and processing within the field.
Globally, in most well-run gas operations, THISDAY’s checks showed that field use typically sits in the low single digits up to about 10 per cent of total production.
A review of the NUPRC figures indicated that Nigeria produced an average of 7.45 billion standard cubic feet per day (bscf/d) of gas during the period. Of this, Associated Gas (AG) accounted for 4.05 bscf/d, representing about 54 per cent of total output, while non-associated gas (NAG) contributed 3.41 bscf/d.
Despite this relatively significant number, a large portion of this production never makes it to the market, with field use alone accounting for an annual average of 30 per cent of total gas output, and quarterly figures ranging between 23 per cent and 32 per cent.
While some level of field use is inevitable, the scale observed in Nigeria, it was learnt, points to inefficiencies in upstream operations and limited optimisation of gas handling systems.
Besides, the data from the upstream regulator revealed that gas flaring added another layer of losses, averaging 8 per cent of total production over the year, with a range of 7 to 9 per cent across quarters.
Although this represents a controlled band compared to historical levels, it still reflected persistent gaps in gas gathering, processing, and evacuation infrastructure, especially in oil-producing areas where associated gas is generated.
Combined, these two components, field use and flaring, absorbed approximately 38 per cent of Nigeria’s gas output, leaving just over 60 per cent available for domestic utilisation and export. For a country that is simultaneously grappling with supply shortages at home and rising demand abroad, this has significant implications.
On the domestic front, Nigeria’s gas-to-power segment remains constrained, despite the country’s vast reserves. Power generation companies continue to face inconsistent gas supply, which has been widely identified as one of the key limitations to improving electricity output in the country.
This means that while the country produces substantial volumes of gas, a large share is either consumed within production processes or lost through flaring, tightening the volume available for power generation and industrial use.
Overall, domestic gas utilisation averaged 30 per cent of total output throughout 2025, indicating that field use volume and local consumption were the same quantity during the period under consideration.
Similarly, although export demand remains strong, especially given the ongoing US-Iran war, with European markets in particular increasingly looking toward Nigeria as an alternative gas supplier amid shifting global energy dynamics, Nigeria’s response has been largely underwhelming.
According to the NUPRC information, export volumes during the period stood at an annual average of 33 per cent of total gas production allocated to external markets. In the same vein, quarterly export figures ranged from 31 per cent to as high as 38 per cent, reinforcing the dominance of exports relative to domestic consumption.
When export numbers and local consumption are deducted, the data showed that nearly two-fifths of production is effectively locked out of commercial use due to operational consumption and flaring, representing what could be a significant efficiency gap in the system.
Further insights from the data highlighted the close linkage between oil production and gas output. Because a substantial portion of Nigeria’s gas is produced as associated gas, disruptions in oil operations whether due to infrastructure outages, vandalism, or other operational challenges directly impact gas availability.
This dynamic was evident in the decline recorded in September and into the fourth quarter, reflecting a narrowing gap between oil production trends and associated gas volumes. At the same time, there are indications of gradual shifts within the production mix.
Non-associated gas output strengthened in the fourth quarter and exceeded associated gas production during the final three months of the year, suggesting growing emphasis on dedicated gas developments, which are less dependent on oil production and could provide a more stable supply base over time.
Despite these developments, the persistence of high field use levels points to the need for improved efficiency in upstream operations. Reducing the proportion of gas consumed internally would immediately free up additional volumes for both domestic and export markets.
Similarly, further reductions in flaring would require accelerated investment in gas capture infrastructure, including pipelines and processing facilities capable of handling associated gas that is currently being burned off.
However, the NUPRC data implied ongoing regulatory efforts to curb flaring, with rates largely contained within a narrow band during the year, aligning with Nigeria’s broader commitment to eliminate routine gas flaring by 2030.
“The export market continues to dominate relative to domestic supply. Domestic sales remained relatively stable throughout the year, reflecting continued efforts to meet local supply obligations. However, the domestic market remains constrained by inadequate infrastructure across both the supply and offtake segments of the value chain, although gradual improvements are being recorded
“Gas flaring remained within a controlled range during the period, averaging approximately 7 to 8 per cent of total production. Although flaring increased slightly in the fourth quarter, overall performance reflects continued enforcement of flare management thresholds across producing fields and facilities.
“Through progressive tightening of these thresholds, the commission remains committed to achieving the 2030 zero routine flaring target,” the commission stated in an explanatory note.
