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Natural Gas Reserves in ECOWAS
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By Oil and Gas Author
Published on 09/4/2006
 

West Africa contains approximately 32 percent of Africas total natural gas reserves. Nigeria holds the Communitys largest proven reserves with 185 trillion cubic feet (Tcf). However, proven reserves are also located in CÔte dIvoire (1.0 Tcf), Ghana (840 billion cubic feet; Bcf), and Benin (40 Bcf). Although natural gas is still in early stages of use in the region, several projects are under way that should increase the future use of the resource.


Natural Gas Reserves and Production- Nigeria

According to 2006 estimates by the Oil and Gas Journal (OGJ), Nigeria is the seventh largest natural gas reserve holder in the world and the largest in Africa. In October 2004, Nigeria announced that its natural gas reserves could be as high as 660 Tcf. The government plans to raise earnings from natural gas exports to 50 percent of oil revenues by 2010. However, the Nigerian National Petroleum Company (NNPC) estimates that $15 billion in private sector investments is necessary to meet its natural gas development goals by 2010. The vast majority of natural gas found in Nigeria is associated, meaning that it occurs in crude oil reserves as free gas. Because many of the fields lack the infrastructure to produce the associated natural gas, it is flared. Nigeria flares more natural gas than any other country in the world, with 43 percent of its total annual natural gas production being flared. NNPC estimates that Nigerian flared natural gas accounts for approximately 20 percent of the world total. Nigeria is working to end natural gas flaring by 2008. However, Shell announced in its 2004 People and Environment Annual Report that it would not be able to meet the 2008 goal of eliminating natural gas flaring.


Liquefied Natural Gas in Nigeria

A significant portion of Nigerias natural gas is processed into liquefied natural gas (LNG). Nigerias most ambitious natural gas project, the $3.8 billion liquefaction facility on Bonny Island, was completed in September 1999. In January 2006, NLNG sent its first shipment of LNG exports to the United States from its newly-commissioned fourth train. The companys fifth train began operating in January 2006 as well. The additional two trains have increased annual production capacity to 17 million tons per year of LNG. Plans have been approved for a sixth train (to come online in 2007), which is expected to bring total capacity to 22 million tons per year. The facility is currently supplied from dedicated (non-associated) natural gas fields, but it is anticipated that within a few years half of the input natural gas will consist of associated (currently flared) natural gas from existing oil fields. In January 2005, ExxonMobil signed an MOU with NNPC to study the possibility of constructing a second LNG plant on Bonny Island to come online in 2010. The plant would produce around 4.8 million tons per year of LNG.


Natural Gas Reserves and Production - Côte dIvoire

According to 2006 estimates by the OGJ, CÔte dIvoire has 1.0 Tcf of proven natural gas reserves. Although exploration teams first discovered natural gas in CÔte dIvoire in the 1980s, it wasnt until the mid-1990s that companies began to develop the resource. In 2003, CÔte dIvoire produced 50 Bcf of natural gas, while consuming 46 Bcf. The Ivoirian government estimates that natural gas consumption will grow by 50 percent over the next three years. CÔte dIvoires largest producing natural gas field is the Foxtrot field in Block CI-27. Foxtrot contains estimated recoverable natural gas reserves of 650 Bcf, and the field produces around 80 MMcf/d. The Manta field is also located in Block CI-27 and in December 2005, the Mahi-1 well began producing natural gas at 32 MMcf/d. The Block is operated by Foxtrot, with a 24 percent interest and partners include Petroci (40 percent), SECI; a member of the Bouygues group of France (24 percent), and Energie de CÔtedIvoire (Enerci); a joint venture of Gaz de France and EdF Group (12 percent).


Natural Gas Reserves and Production – Senegal

Senegals natural gas reserves are primarily located onshore. In October 2002, U.S.-independent Fortesa International began natural gas production from the onshore Gadiaga Development Area, with current production at two MMcf/d of natural gas. Fortesa holds a 70 percent stake in Gadiaga, with the remaining 30 percent held by Petrosen, the Senegalese national oil company. In December 2005, Fortesas Sadjiratou-1 natural gas well tested positive and the company has plans to drill another test well in 2006. Petrosen anticipates that Tullow Energy, Hunt Oil and Edison will drill additional test wells in 2007.