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Domestic gas demand surges as Nigeria boosts local supply


The Nigerian Upstream Petroleum Regulatory Commission and Nigeria LNG Limited have intensified efforts to boost domestic gas supply as rising demand pushes NLNG to commit 100 per cent of its LPG production to the local market.

The Commission Chief Executive of NUPRC, Mrs Oritsemeyiwa Eyesan, said the regulator is intensifying reforms to support the Federal Government’s gas agenda, with a strong focus on increasing domestic utilisation.

According to a statement signed by the Head, Media and Corporate Communications, Eniola Akinkuotu, on Saturday, Eyesan made this known while receiving the Managing Director of Nigeria LNG Limited, Mr Adeleye Falade, during a courtesy visit to the commission.

She described the visit as timely, noting that since December, the commission had accelerated regulatory reforms to align with provisions of the Petroleum Industry Act.

Eyesan said the agency was deliberately repositioning itself to remove bottlenecks and improve ease of doing business in the upstream sector.

“We are deliberately repositioning the Commission as a business enabler. Through our monthly stakeholder engagements, we X-ray industry performance and resolve issues proactively to ensure they do not escalate,” she said.

She linked recent improvements in investor confidence to the government’s responsiveness to industry concerns, noting that this had begun to translate into increased final investment decisions.

Speaking on Nigeria’s gas ambitions, the NUPRC boss stressed that the Federal Government’s Decade of Gas initiative was already yielding practical outcomes, particularly in driving domestic supply.

“The Decade of Gas is not aspirational; it is a practical framework for expanding domestic utilisation while strengthening export capacity,” she stated.

Eyesan, however, charged operators to match government efforts with a stronger commitment to performance and compliance.

“As government continues to be responsive, operators must demonstrate reciprocity through performance, compliance, and investment discipline,” she added.

In his remarks, the NLNG Managing Director underscored the growing importance of collaboration across the upstream value chain to sustain gas availability, especially for the domestic market.

Falade disclosed that rising local demand for cooking gas had significantly reshaped NLNG’s supply strategy, forcing the company to prioritise Nigeria over export markets.

“Today, 100 per cent of our LPG production is dedicated to the domestic market, not due to reduced output, but because demand has expanded significantly,” he said.

He described the move as a deliberate intervention to deepen gas penetration and stabilise supply within the country.

Looking ahead, Falade expressed optimism about increased output, revealing that the ongoing Train 7 project would significantly boost production capacity.

“Train 7, expected to come on stream next year, will increase our production capacity by about 35 per cent, positioning us to scale both domestic supply and export volumes,” he said.

The development comes amid sustained efforts by the Federal Government to deepen gas adoption as a cleaner and more affordable energy source, with policymakers increasingly looking to domestic demand as a key driver of growth in the sector.

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