Nigeria is ranked tenth in the world in both oil and gas reserves. Of these gas reserves, Approximately 50 percent is associated gas (AG) and 50 percent is non-associated (NAG). Gas production is currently around 3.5 Bcf/d with approximately 17 percent of this re-injected, 33 percent used commercially and the remaining 50 percent of gas, mostly associated gas, flared. Finding markets for such huge volumes of associated gas poses a major challenge. However, the potential for growth in the domestic market is considerable, with power generation offering one of the largest markets. Unfortunately, the utilization of gas in Nigeria is hampered by a lack of commercial markets and infrastructure.
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