Nigeria Needs $22bn for Gas Pipeline Projects, Says NNPC
Nigeria may require up to $22bn in fresh investments to deliver planned gas pipeline infrastructure under the Nigerian National Petroleum Company Limited (NNPC) Gas Master Plan 2026, as the Federal Government intensifies efforts to unlock the country’s vast but underutilised gas resources.
This is contained in the NNPC Limited Gas Master Plan 2026, a copy of which was analysed. The document revealed that current gas transportation infrastructure projects in development plans could require investments of up to $22bn, driven largely by the scale of new pipeline projects needed to deepen domestic gas utilisation and expand export capacity.
The report stated, “Current gas pipeline infrastructure in development plans could require up to $22bn investment.”
The Gas Master Plan 2026 represents Nigeria’s latest strategic blueprint for transforming its natural gas endowment into economic growth, energy security, and industrial development.
The plan was officially unveiled on January 30, 2026, at the NNPC Towers in Abuja, during a ceremony attended by top government officials, industry executives, and sector stakeholders.
The 2026 master plan builds on the original Nigerian Gas Master Plan of 2008, which outlined a long-term vision for gas utilisation but was constrained by infrastructure deficits, funding challenges, and execution gaps.
According to the document, 30 priority gas projects are expected to be completed within the next three years, forming the backbone of Nigeria’s near-term gas expansion. An additional 30 projects are projected to come onstream over the next decade, significantly strengthening gas supply to power plants, industries, households, and export terminals.
Unlike the 2008 plan, the new strategy places strong emphasis on scaling gas production, expanding critical infrastructure, and strengthening market linkages across liquefied natural gas (LNG), power generation, industrial offtakers, pipelines, and compressed natural gas (CNG).
The plan sets ambitious production targets of over 10 billion standard cubic feet of gas per day (bcf/d) by 2027 and 12bcf/d by 2030, while seeking to unlock more than $60bn in new investments across the gas value chain.
Under the sub-theme, “Nigeria’s Tremendous Gas Potential Still Needs To Be Unlocked,” the document highlighted the paradox of Nigeria’s gas sector. It revealed that while Nigeria holds Africa’s largest proven gas reserves, estimated at about 210 trillion cubic feet (TCF) and ranks among the top 10 gas-rich countries globally, it currently sits 16th in global gas production, underscoring the scale of untapped potential.
The reserves comprise about 48 per cent associated gas (101TCF) and 52 per cent non-associated gas (110TCF).
In 2025, Nigeria’s gas production stood at roughly 7.5bcf/d, but only about 60 per cent, or 4.6bcf/d, was commercialised.
Over 10 per cent was flared making Nigeria the seventh-largest gas-flaring country globally while nearly 30 per cent was reinjected.
Over the past five years, commercialised gas production has ranged between 4.1bcf/d and 4.7bcf/d.
However, domestic gas supply has improved by about six per cent, rising from 1.6bcf/d in 2021 to approximately 2.0bcf/d, with further increases expected from recent and anticipated final investment decisions (FIDs).
The plan also noted that compliance with Domestic Gas Delivery Obligations has improved significantly, rising from about 50 per cent five years ago to nearly 70 per cent in 2024.
Despite these gains, the document warned that gas demand is projected to exceed supply in all scenarios by 2030, signalling an urgent need to incentivise upstream gas development, particularly non-associated and deep-water gas projects, while prioritising demand segments with the highest economic impact.
Domestic gas demand is expected to remain driven by power generation, gas-based industries, and the commercial sector, while export demand will continue to be dominated by LNG, which accounts for about 70 per cent of gas exports. Nigeria LNG Limited (NLNG) has historically accounted for over 95 per cent of export volumes.
Nigeria currently has over 2,500 kilometres of gas pipelines, but the master plan identifies major expansion needs through projects such as the Ajaokuta-Kaduna-Kano (AKK) pipeline, the OB3 pipeline, and other strategic transmission links designed to improve nationwide gas distribution.
It stated, “On the gas transportation network, Nigeria boasts of over 2,500km of pipelines, with plans to expand through major projects like the Ajaokuta-Kaduna-Kano and OB3 pipelines, among others, which will enhance gas distribution across the country.”
The report added that intensified investments are required to stimulate gas supply growth and make infrastructure development more attractive to financiers through incentives and clear visibility of returns.
Providing further insight, the Focal Person of the NNPC Gas Master Plan Implementation Assurance Team, Ekpei Ukam, said the new master plan is anchored on clearly defined levers designed to drive commercial viability and scale.
Speaking during a panel session at the Nigerian International Energy Summit, themed “Driving Exponential Growth Through Value-Adding Partnerships and Cost Efficiency,” Ukam said a major shift under the plan is the move towards market-led gas development.
He explained that NNPC is deliberately moving away from a fragmented, project-by-project approach to gas development in favour of an integrated gas hub model, which would improve coordination, enhance commerciality, and optimise costs across the gas value chain.
According to Ukam, the master plan identifies about 23 existing gas hubs across the country, which will now be developed in a more coordinated and commercially viable manner to accelerate Nigeria’s gas-driven growth agenda.
