A’Ibom, GACN, NNPC Sign $3.5 Billion Gas Deal to Boost Infrastructure, Industrialisation

Akwa Ibom State Government, the Nigerian National Petroleum Company Limited (NNPC Ltd), and the Gas Aggregation Company of Nigeria (GACN) have signed a $3.5 billion gas investment agreement aimed at enhancing domestic gas utilization and industrial development in Nigeria. The deal was signed on Monday during the South-South Gas Utilisation Forum held in Uyo, the Akwa Ibom State capital. The agreement marks a significant step in the Federal Government’s push to industrialise the country through its “Gas to Prosperity – Renewed Hope” agenda and the “Decade of Gas” initiative. The deal will see the development of key gas infrastructure across Akwa Ibom, including pipelines, gas delivery systems, and major processing facilities. Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, described the deal as a milestone that will reposition Akwa Ibom from being just a gas-producing state to a centre for value addition and energy innovation. He said the project aligns with the federal government’s goals for energy security, industrialisation, and inclusive economic growth. The $3.5 billion investment will support the establishment of a methanol plant, a fertilizer plant, and a floating liquefied natural gas (LNG) facility. It will also provide virtual pipelines for compressed natural gas (CNG), liquefied petroleum gas (LPG), and LNG to power industries and supply households. Akwa Ibom Governor Umo Eno, represented by Deputy Governor Senator Akon Eyakenyi, expressed optimism about the project’s potential to drive economic transformation in the state. He stated that the agreement includes the development of the Akwa Ibom Gas Master Plan, which will guide infrastructure planning, demand forecasting, and sectoral integration. Managing Director of GACN, Olalekan Ogunleye, reaffirmed the commitment of stakeholders to maximizing the country’s gas potential and delivering clean, reliable energy solutions to end users. He said the project will not only enhance energy access but also promote investment, job creation, and community development. Senior Special Assistant to the President on Energy, Olu Verheijen, said the agreement reflects the Tinubu administration’s focus on leveraging Nigeria’s vast gas resources to reduce reliance on imported fuel and ensure a just energy transition. The deal also complies with the provisions of the Petroleum Industry Act (PIA), which mandates the establishment of Host Communities Development Trusts to ensure that impacted communities benefit directly from oil and gas projects. Implementation of the gas project is expected to commence in phases, with full support from regulatory agencies and participating companies. Stakeholders at the forum welcomed the agreement as a bold and necessary move to reposition Nigeria’s energy sector and drive long-term economic growth.