Nigeria requires $22bn investment to complete planned gas pipeline projects – NNPC

…says gas master plan critical to de-risk gas supply

The Nigerian National Petroleum Company (NNPC) Limited has revealed that Nigeria requires an estimated $22 billion in fresh investment to complete its planned gas pipeline infrastructure.

The company stated this in its Gas Master Plan (GMP) 2026, which was launched in January 2026.

According to the GMP document, Nigeria currently have 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.

It also stated 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.

“Current gas pipeline infrastructure in development plans could require up to $22 billion investment.

“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,” the plan indicates.

The company stated that domestic gas delivery obligations (DGDO) performance improved to 70 percent in 2024, from the 50 percent five years ago. It also added that power, GBl and commercial sectors are expected to drive domestic demand.

It also hints on plans to increase gas commercialisation from the current 60 percent of gas 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.”

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,” NNPC said.

According to NNPC, 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 company indicated that the roadmap is designed to provide critical support for the ‘Decade of Gas’ initiative, specifically targeting the liquidity challenges within the gas-to-power value chain. By facilitating sustainable supply terms for Gas-Based Industries (GBIs), the NNPC aims to secure the realization of high-impact projects, including Liquefied Natural Gas (LNG), Floating LNG (FLNG), Compressed Natural Gas (CNG), and LPG.

Furthermore, the NNPC is pushing to convert 3P (possible) gas reserves into 2P (proved plus probable) reserves. In the world of energy finance, 2P reserves are considered the gold standard for bankability, allowing operators to secure the international financing needed for deepwater development

A core component of the strategy involves de-risking gas supply for both domestic and regional market expansion. To achieve this, the NNPC is prioritizing cost efficiency through the creation of gas hubs. These hubs are intended to streamline operations and ensure the expansion of gas processing plants via facility sharing and operational synergies, thereby reducing the capital burden on individual projects.

The initiative is also aligned with the federal government’s 2027 and 2030 mandates. The NNPC aims to accelerate the development of deepwater gas assets and eliminate routine gas flaring and re-injection by 2027. Furthermore, the company is pushing to convert 3P (possible) gas reserves into 2P (proved plus probable) reserves to provide a more reliable and bankable supply outlook for investors.

On the infrastructure front, the plan focuses on closing deliverability gaps by advancing strategic national and intercontinental projects such as the Trans-Nigeria Gas Pipeline (TNGP) and the Ajaokuta-Kaduna-Kano (AKK) pipeline. By triggering additional bankable infrastructure investments, the NNPC expects to enhance the overall deliverability of gas across the country.

In a significant shift toward market liberalization, the NNPC is advocating for a ‘willing buyer-willing seller’ commercial approach for domestic gas pricing. This move is expected to ensure that commercial transactions remain market-driven and sustainable over the medium to long term, fostering a more competitive environment for private sector participation