NNPC: $22bn Required to Boost Nigeria’s Gas Pipeline Infrastructure

Emmanuel Addeh in AbujaThe Nigerian National Petroleum Company Limited (NNPC Ltd) has revealed that the country requires a staggering $22 billion investment in pipeline infrastructure, as part of a comprehensive strategy to move Nigeria to an economy powered by gas.The disclosure was a central pillar of the newly released NNPC Gas Master Plan (GMP) 2026 seen by THISDAY, a roadmap designed to bridge the gap between Nigeria’s massive sub-surface reserves and its domestic energy needs.

According to the NNPC, while the country possesses Africa’s largest proven gas reserves, estimated at 210 trillion cubic feet, it remains only 16th in global production. This energy paradox, it said, is what the GMP 2026 seeks to resolve by prioritising midstream connectivity, infrastructure expansion, and commercial viability.

The GMP 2026 highlighted that the current gas transportation network, spanning over 2,500km, is a significant foundation but remains insufficient to meet the nation’s burgeoning industrial and power demands. To close this gap, the NNPC said it is pushing for the completion of strategic national and regional projects, including the Ajaokuta-Kaduna-Kano (AKK) and the OB3 pipelines.

The NNPC noted that intensified investments are needed to stimulate gas supply growth, particularly for non-associated gas and deepwater developments, which are critical 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 document stated.One of the most ambitious targets within the GMP, it said, is the focus on gas monetisation, explaining that currently, Nigeria commercialises only about 60 percent of its total gas production, which translates to roughly 4.6 billion cubic feet per day out of a 7.5 billion cubic feet per day output. The remaining volumes are either reinjected for oil recovery or lost to routine flaring, with Nigeria currently ranking as the 7th largest gas-flaring nation in the world.The NNPC stated that it aims to change this trajectory aggressively, 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 new gas master plan stated.To reach these goals, the national oil company reiterated its commitment to eliminating routine gas flaring by 2027. This shift, it said, is not just environmental but deeply economic, as it aims to redirect gas toward power generation and gas-based industries like fertiliser and petrochemical plants.

It said that seven high-readiness hubs have been identified as the engine room for near-term growth, accounting for 60 per cent of the nation’s quoted proved plus probable gas reserves.Among these priority areas, the document indicated that the Gbaran-Soku-Obagi-OBOB Hub stands out as the largest, with a Central Processing Facility (CPF) capacity of 5.2 billion cubic feet per day and a planned expansion of 1.1 billion cubic feet per day.

Similarly, the Utorogu-Ughelli-Okpokonou-Iseni-Brass Hub boasts a current capacity of 600 million standard cubic feet per day with a planned expansion of 1.2 billion cubic feet per day, which includes the ongoing NAG-3 project.Besides, the Assa North Hub is also slated for a 600 million standard cubic feet per day expansion on its current 550 million standard cubic feet per day capacity. For more frontier developments, the NNPC said it has identified hubs requiring entirely new Central Processing Facilities, led by the Anyala-Funiwa-Ofrima-Madu project and the Zabazaba-Agbami-Nwa Doro hub.According to the NNPC, the gas master plan is explicitly aligned with the President Bola Tinubu’s mandate to secure Nigeria’s energy future by a production increase to at least 10 billion cubic feet per day by 2027 and 12 billion cubic feet per day by 2030.Achieving this, it explained, requires a fundamental shift in how gas is priced and traded, with the NNPC advocating for a willing buyer-willing seller commercial approach.

The national oil company stated that it is addressing the implementation of the massive undertaking through a robust operational backbone focused on transparency and accountability. This, it pointed out, includes a unified data platform and improved data governance to provide digital transparency across the value chain.