By Obiabin Onukwugha
The Nigerian National Petroleum Company Limited (NNPCL) says the country will require about $22billion, an equivalent of N29,8trilion in investment, to expand gas pipeline infrastructure.
NNPC announced the estimate in its ‘NNPC Gas Master Plan 2026’ report. It said domestic gas delivery obligations (DGDO) performance has improved from the 50 percent obtainable five years ago to 70 percent in 2024.
The report indicated that gas demand is set to exceed gas supply in all scenarios by 2030, indicating an urgent need to incentivise gas development and supply whilst prioritising high economic impact demand..
The report revealed that export demand will continue to be driven by LNG which accounts for 70% of export demand, even as NLNG historically accounted for over 95% of these volumes, pointing out that domestic demand is expected to continue to be driven by power, GBl and commercial sectors.
The NNPCL reported that Nigeria boasts over 2,500km of pipelines, with plans to expand through major projects like the Ajaokuta-Kaduna-Kano (AKK) and Obiafu-Obrikom-Oben (OB3) pipelines, which is expected to enhance gas distribution across the country. The NNPCL said it plans to increase gas commercialisation from the current 60 percent produced to 75 percent by 2027 and 80 percent by 2030.
“By 2030, monetisation is projected to increase to about 80 per cent of produced gas, supported by infrastructure readiness, sustained investment, and commitment in upstream development, reduced reinjection and flaring.
“Achieving these outcomes requires consistent investment in CPF reliability, pipeline revamps, and hub interconnections,” the report read in part.
According to the report, the NNPC GMP outlook shows a “strong” upward trajectory in Nigeria’s supply potential, with production expected to “reach 10 barrels of standard cubic feet (scf) per day by 2027, fully aligning with the presidential mandate”.
“By 2030, supply could rise further to 15Bcf/d as major hubs such as Gbaran_Soku_Obagi_OBOB, Utorogu_Ughelli, Otumara_Forcados_Tunu, and key offshore clusters come online or ramp up.
“Beyond this horizon, supply begins to taper without additional resource maturation, underscoring the critical importance of continued exploration and sustained investment to secure long-term output,” the report further read.
The NNPCL report also stated that Nigeria has the largest proven reserves in Africa with 210 trillion cubic feet (TCF) and ranks in the top 10 countries with the largest gas reserves worldwide — “signalling huge potential to meet domestic demand and become a key global player”.
The report however added that Nigeria ranks only 16th in global production, highlighting significant untapped potential for growth and investment to unlock these gas resources.
