Review of Technological Requirements and Challenges in Nigeria's Associated Gas Development

Abstract

Associated gas (AG) development represents a critical pathway for Nigeria to achieve energy security, mitigate environmental damage from gas flaring, and unlock significant economic value. Historically, AG, a byproduct of crude oil production, has been widely flared due to inadequate infrastructure, technological deficits, and an insufficient regulatory framework, positioning Nigeria among the world’s leading gas-flaring nations. The passage of the Petroleum Industry Act (PIA) in 2021 introduced significant fiscal incentives and penalties to discourage flaring and promote the commercialization of this resource. Successfully transitioning from flaring to utilization, however, hinges on overcoming substantial technological requirements and challenges. This review, derived from a techno-fiscal analysis of the PIA era, systematically examines the core technological advancements—including modular gas processing, small-scale Liquefied Natural Gas (LNG), Gas-to-Power (GTP) systems, and Carbon Capture, Utilization, and Storage (CCUS)—required to monetize associated gas. It highlights that the deployment of these technologies is severely constrained by high upfront capital costs, infrastructure deficits, logistical complexities in remote areas, and the need for robust regulatory enforcement. The techno-fiscal viability of AG projects is intrinsically linked to the adoption of scalable, innovative technologies that can efficiently capture and process both large and small, dispersed gas volumes. The study concludes that for Nigeria to successfully leverage the PIA’s intent, it must address these technological barriers through targeted investment, regulatory clarity, and the adoption of advanced monitoring systems to ensure compliance and environmental sustainability.