August 20, 2017

Predicted UK gas reserves threaten Nigeria’s exports

Predicted UK gas reserves threaten Nigeria’s exports..NAIJA INVEST

New Findings on the UK’s shale gas reserves may put African gas exporters at risk in the future, analysts predict. A BBC report revealed that UK firm, IGas suggested the licensed area set aside for gas exploration might hold up to 170 trillion cubic feet of gas, although the economically extractable quantity remains a doubt.

Previous reserve figures indicated nine trillion cubic feet of shale gas alone was reserved at the site. However, it is now estimated that the unexplored gas volume ranges from 15 trillion to 172.3 trillion cubic feet, 20 times the previously estimated numbers, Ventures Africa reports.
This revelation poses a great threat to African gas exporters. United Kingdom is the fifth largest importer of gas, with 53,630,000,000 cubic meters of gas imported in 2012 alone. African countries, notably Nigeria benefit immensely from revenues accruing from these trades.

Predicted UK gas reserves threaten Nigeria’s exports..NAIJA INVEST

Predicted UK gas reserves threaten Nigeria’s exports..NAIJA INVEST

According to indexMundi, Nigeria Exports 15 billion cubic meters of gas yearly and a large percentage of this is consumed by the UK. It is feared that with this discovery, the reliance on African gas export will greatly devalue while prices might significantly drop due to increased supply.
“Our estimates for our area alone could mean that the UK would not have to import gas for a period of 10 to 15 years” the IGas chief executive, Andrew Austin Said. “It’s not unreasonable to assume that there could be as much as 500 trillion cubic feet in the Bowland shale across the North West”.
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IMAGES: www.maverickinspection.com
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