On Tuesday Nigerian oil company Seplat said that their goal is to reach 20% share of the domestic gas market by 2018, Reuters Africa reported.
CEO Austin Avuru said that Seplat hopes to increase gross output of 120 million standard cubic feet (scuf) of gas per day to 400 million scuf by 2017.
The Nigerian gas demand is expected to rise from 1.2 billion scuf per day to 3 billion scuf by 2017.
Avuru said:"By the end of 2017, [Seplat’s] target is to achieve a reserve/production ratio of 20 years."
This year shares in Seplat on the Nigerian Stock Exchange (NSE) have gained 27% but remain 22% lower than their listing price of $3 (ZAR35) in April 2014.
According to Avuru, these figures fell as a result of the low oil prices.
Seplat finalised the takeover of a 40% stake in an onshore oil block, OML 53 from American oil and gas exploration company Chevron. This happened despite Nigerian marginal oil field operator Brittania-U blocking the exploration company from selling its assets as Brittania said it had paid a deposit to buy.
"We have now been able to move that to closure and Chevron has handed over the asset to us," Avuru said, adding that the company would be operating the oil block "while we thrash out whatever is left of the litigation”.
According to the US Energy Information Agency, Nigeria is amongst the top five exporters of liquefied natural gas (LNG) in the world with Japan importing 23% of the 800 trillion cubic feet of gas exported in 2013. In the same year, the West African country produced 1.35 trillion cubic feet of dry natural gas, putting it 30th in the world’s largest natural gas producers.