The Nigerian National Petroleum Company Limited (NNPC Ltd) has disclosed that Nigeria needs an estimated $22 billion investment in pipeline infrastructure to transform the nation into a gas-driven economy.
This revelation is a key part of the newly released NNPC Gas Master Plan (GMP) 2026, seen by HEDLYNE, which outlines strategies to connect Nigeria’s vast sub-surface gas reserves to domestic energy needs.
NNPC stated that, although Nigeria holds Africa’s largest proven gas reserves at 210 trillion cubic feet, it ranks only 16th in global production. The GMP 2026 aims to address this gap by focusing on midstream connectivity, expanding infrastructure, and ensuring commercial viability.
The plan noted that Nigeria’s current gas pipeline network stretches over 2,500km, providing a solid foundation but still insufficient to meet the growing demands of industry and power generation. To close this gap, the NNPC emphasized completing strategic national and regional projects, including the Ajaokuta-Kaduna-Kano (AKK) and OB3 pipelines.
The NNPC highlighted that greater investments are crucial to boost gas supply, especially from non-associated and deepwater sources, which are vital for long-term sustainability.
“The Domestic Gas Delivery Obligations (DGDO) performance improved from 50 per cent five years ago to 70 per cent in 2024. Looking forward, 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.
“Domestic demand is expected to continue to be driven by power, Gas-Based Industries (GBI) and commercial sectors. Export demand will continue to be driven by LNG which accounts for 70 per cent of export demand (NLNG historically accounted for over 95 per cent of these volumes).
“On gas transportation network, Nigeria boasts of over 2,500KM of pipelines, with plans to expand through major projects like the Ajaokuta-Kaduna-Kano (AKK) and OB3 pipelines among others, which will enhance gas distribution across the country. Current gas pipeline infrastructure in development plans could require up to $22 billion investment,” the GMP stated.
A major focus of the plan is gas monetisation. Currently, Nigeria commercially uses only about 60 per cent of its total gas output—roughly 4.6 billion cubic feet per day out of 7.5 billion cubic feet per day. The rest is either reinjected for oil recovery or lost to routine flaring, with Nigeria ranking seventh globally in gas flaring.
NNPC aims to change this trend, targeting 75 per cent gas commercialisation by 2027 and 80 per cent 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 plan said.
The company reiterated its commitment to ending routine gas flaring by 2027, a move that is both environmentally and economically significant, as it will redirect gas toward power generation and gas-based industries such as fertiliser and petrochemical plants.
Seven high-readiness hubs have been identified as critical for near-term growth, accounting for 60 per cent of Nigeria’s proven and probable gas reserves. The Gbaran-Soku-Obagi-OBOB Hub is the largest, with a Central Processing Facility (CPF) capacity of 5.2 billion cubic feet per day and a planned 1.1 billion cubic feet per day expansion.
The Utorogu-Ughelli-Okpokonou-Iseni-Brass Hub currently has a 600 million standard cubic feet per day capacity, with an additional 1.2 billion standard cubic feet per day planned, including the ongoing NAG-3 project. Similarly, the Assa North Hub is set for a 600 million standard cubic feet per day increase on its current 550 million standard cubic feet per day capacity. New hubs requiring entirely new CPF installations include the Anyala-Funiwa-Ofrima-Madu project and the Zabazaba-Agbami-Nwa Doro hub.
The GMP aligns closely with President Bola Tinubu’s goal to raise Nigeria’s gas production to at least 10 billion cubic feet per day by 2027 and 12 billion cubic feet per day by 2030. Achieving this requires a fundamental change in gas pricing and trade, with the NNPC advocating a willing buyer-willing seller commercial model.
The NNPC also emphasized a strong operational framework focused on transparency and accountability to implement the plan, including a unified data platform and enhanced data governance to ensure digital transparency across the gas value chain.
