Oghenekevwe Ovbije & Obiageri Amaliri
Houston, TX — Although Nigeria continues to position natural gas as its preferred fuel for the transition, the difference between its goals and actual achievements widens annually. Possessing more than 206 trillion cubic feet (TCF) of confirmed gas reserves, the nation still faces challenges in providing cost-effective gas to households, businesses, and transportation networks. Only a fraction, less than 10%, of the generated gas is used locally, while the growth of infrastructure remains disjointed.
On the other hand, countries such as Qatar, the United States, Russia, Malaysia, Turkmenistan, and Australia, each facing their own political and economic challenges, have effectively utilized natural gas for national development. Their successes provide valuable insights into how Nigeria can tap into its own potential, not only as an exporter but also as a country where gas enhances daily living.
Qatar: Economic Growth via Strategic Export Participation
Qatar evolved from a minor hydrocarbon exporter into a leading global gas producer by implementing well-considered strategic planning. Central to its achievements is a joint-venture approach that combines government ownership with involvement from International Oil Companies (IOCs), providing access to funding, markets, and advanced technology. However, Qatar's strategy extended beyond just exporting. The government developed a national gas distribution network, ensuring that homes, schools, and hospitals are supplied with piped gas, while public buses and government vehicles operate on compressed natural gas (CNG). Revenue generated from liquefied natural gas (LNG) exports supports not only infrastructure development but also education and healthcare initiatives. Gas monetization should not conclude at the Bonny terminal; it must return to benefit the population by fueling cities, transportation, and public services. A reinvestment policy focused on gas-to-home and gas-for-transport infrastructure is essential.
USA: Innovation, Deregulation, and Economic Influence
The United States emerged as a major gas power not due to government planning, but because of deregulation, technological progress, and the opening up of markets. The shale gas boom, made possible by horizontal drilling and hydraulic fracturing, revealed vast reserves. However, just as significant was the legal system that enabled independent producers to compete, access facilities, and establish clear pricing. Cities such as Los Angeles, New York, and Houston now operate large fleets of CNG buses, and natural gas has replaced coal as the main energy source in many states. Pipelines span the nation, connecting suppliers with consumers in real time through hub-based trading systems. Extracting value from gas depends on a competitive and properly regulated market. Deregulating domestic gas pricing and city-driven CNG adoption programs could boost growth much more quickly than state-controlled monopolies.
Russia: Infrastructure-Led National Coverage
Russia's strategy has been based on government-driven infrastructure growth and ensuring energy security. More than 70% of homes throughout Russia's expansive territory are linked to piped gas, even in difficult climates and isolated areas. This achievement stems from continuous investment in over 450,000 km of pipeline systems, managed pricing policies, and strict enforcement of household connections. Alongside fulfilling local demands, Russia exports large quantities of gas through long-distance pipeline diplomacy, using gas as both an economic driver and a tool for geopolitical influence. If Russia can transport gas across Siberia, Nigeria should be able to link Lagos, Kano, Port Harcourt, and Enugu to national gas networks. A federally supported main pipeline and a city-based gas distribution plan is essential.
Malaysia: Managing National Income and Local Consumption
Malaysia's framework, based on PETRONAS, follows a blended strategy. PETRONAS functions as both a government-owned organization and a commercially driven company. Although Malaysia is a significant exporter of liquefied natural gas (LNG), it keeps domestic prices regulated, maintains urban gas pipeline systems, and provides liquefied petroleum gas (LPG) to rural regions via specific subsidy initiatives. In addition to infrastructure, Malaysia developed a local gas appliance industry, promoting the production of stoves, meters, and compressors within the country. This supported employment and ensured consumers were prepared as gas availability increased. A single, efficient gas authority with commercial independence akin to PETRONAS could promote both export expansion and domestic participation. Nigeria also needs to develop its own gas appliance manufacturing to enhance the value chain.
Australia: Legal Requirements and Market Openness
Australia hosts one of the biggest liquefied natural gas (LNG) export sectors globally, but it has also required gas producers to set aside a part of their output for local use. This measure helps prevent households and businesses from being excluded due to high prices. Additionally, Australia has established clear trading systems (such as the Wallumbilla Gas Supply Hub), which promote efficient markets and attract private investment. Domestic supply requirements and a unified trading framework can help keep prices stable and affordable, particularly for gas-dependent manufacturing and cooking fuel programs.
Turkmenistan: Natural Gas as a Social Agreement
For many years, Turkmenistan provided free natural gas to its citizens, showing that access to energy can be considered a national right rather than just a service. Although this approach was not financially viable in the long term, it led to almost complete access and created a culture of gas usage. Currently, even following changes, more than 80% of the gas produced is used within the country, benefiting both homes and small businesses. Subsidized gas connections and low initial rates for low-income families could encourage quick adoption and decrease dependence on kerosene and firewood.
Every one of these nations started from varied positions, yet they all saw gas as something beyond a simple resource. It serves as strategic infrastructure, a means of social balance, and a tool in international relations. The shared factor is not merely the presence of reserves but also policy consistency, investment in infrastructure, and a dedication to local effects. Nigeria's gas plan needs to now change. It's time to shift from vision to implementing systems-level strategies, taking the best practices from global examples while adapting them to local conditions.