Stay Tuned!

Subscribe to our newsletter to get our newest articles instantly!

News

NNPC Boosts Gas Supply to CNG Operators as Petrol Prices Bite

The Nigerian National Petroleum Company Limited (NNPC Ltd) says it is increasing domestic gas supply to operators in the Compressed Natural Gas (CNG) value chain as part of efforts to reduce the impact of high petrol prices on Nigerians.

NNPC’s Executive Vice President, Gas, Power and New Energy, Olalekan Ogunleye, disclosed this on Monday in Bangkok, Thailand, on the sidelines of the 2026 Gas Technology Exhibition and Conference, Gastech.

Ogunleye said the company was working with upstream producers and other stakeholders to expand domestic gas availability, with CNG operators receiving particular attention.

He said the Gas Master Plan, launched in January 2026, had already produced about 791 million standard cubic feet of additional gas supply as of the end of August.

According to him, the volume represents about 17 per cent of the Federal Government’s target of adding 4.6 billion standard cubic feet of incremental gas supply between the end of 2025 and 2030.

Ogunleye said NNPC was enforcing domestic gas delivery obligations to ensure operators investing in CNG stations, mini-LNG plants and other gas-based projects could access sufficient feedstock.

He added that stronger coordination across the gas value chain was necessary to ensure increased production translated into greater domestic consumption.

The NNPC executive said expansion of the CNG market could have broader economic benefits, particularly by lowering transportation costs for agricultural produce and other goods.

Speaking at a panel session at the conference, Ogunleye identified reliable gas supply and delivery as critical factors for attracting investment into Nigeria’s gas industry.

He also listed access to financing and the selection of capable partners as important requirements for successful gas projects, urging developers to work with financial institutions and partners that understand the African market.

Ogunleye said Nigeria should pursue both domestic gas utilisation and exports, stressing that the two objectives were complementary rather than competing.

He said NNPC’s gas business was expected to generate foreign exchange through exports while also supporting industrialisation and strengthening domestic energy security.

According to him, Nigeria has more than 215 trillion cubic feet of proven gas reserves, which the government intends to use to drive industrial growth and expand its position in the global gas market.

He said the Gas Master Plan seeks to raise the country’s potential reserves beyond 600 trillion cubic feet, while increasing gas production to 10 billion standard cubic feet per day by 2027 and 12 billion standard cubic feet per day by 2030.

Ogunleye also said Nigeria’s existing LNG infrastructure had established the country as a major gas supplier, with Trains 1 to 6 producing 22 million tonnes annually, while Train 7 is expected to be completed in 2027.

Meanwhile, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, said Nigeria was positioning itself to increase gas production and exports amid disruptions to global energy supplies linked to the Strait of Hormuz.

Ekpo said the Federal Government was expanding gas infrastructure and creating a more favourable investment environment through executive orders supporting the implementation of the Petroleum Industry Act.

He, however, stressed that Nigeria’s large gas reserves would not be enough without adequate infrastructure, technology and financing.

The minister identified the OB3 and Ajaokuta-Kaduna-Kano gas pipelines as key infrastructure for connecting gas-producing areas with domestic and regional markets.

He said Nigeria was already supplying gas to countries including Ghana and Togo and was exploring additional export opportunities through projects such as the Trans-Saharan Gas Pipeline.

Ekpo added that domestic consumers would remain the government’s priority under the domestic gas delivery obligation, which requires producers to meet local demand before exporting surplus volumes.

He also said the government was promoting CNG adoption through the Presidential Initiative on CNG, including the deployment of CNG buses and refuelling stations across the country.

Speaking on the wider global energy situation, Oman’s Minister of Energy and Minerals, Salim bin Nasser Al Auh, said current supply challenges were largely linked to difficulties transporting energy from production centres to consumers rather than a shortage of resources or technology.

Thailand’s Prime Minister, Anutin Charnvirakul, also warned that disruptions in global energy supplies were increasing household costs and called for greater investment in the energy sector.

Mercy Omotosho

About Author

Leave a comment

Your email address will not be published. Required fields are marked *

You may also like

Foreign News News

Police Arrest Murder Suspect In Lagos, Recover Exhibits

  • February 10, 2025
Police Arrest Murder Suspect In Lagos, Recover Exhibits The spokesman of the Nigeria Police Force (NPF) Muyiwa Adejobi said Okeke
Foreign News News

Falana Sues Meta, Seeks $5m For Invasion Of Privacy

  • February 10, 2025
Falana, through his lawyer, Olumide Babalola, accused Meta of publishing motion images and voice captioned, “AfriCare Health Center,” on their