The Nigerian National Petroleum Company (NNPC) Limited has said the nation will need about $22 billion in investment to expand gas pipeline infrastructure.
NNPC announced the estimate in the ‘NNPC Gas Master Plan 2026’ report.
“Current gas pipeline infrastructure in development plans could require up to $22 billion investment,” the report reads.
Recall that on January 20, the NNPC unveiled its gas master plan 2026 as part of ongoing efforts to reposition Nigeria’s gas sector as the engine room of national industrialisation, energy security, and sustainable economic growth.
In the latest report, the national oil firm said domestic gas delivery obligations (DGDO) performance has improved, from the 50 percent obtainsable five years ago to 70 pervcent 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,” the report reads.
“Domestic demand is expected to continue to be driven by power, GBl and commercial sectors.
“Export demand will continue to be driven by LNG which accounts for ~70% of export demand (NLNG historically accounted for over 95% of these volumes).”
On gas transportation network, the NNPC said Nigeria boasts of 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.
The company also said it 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,” the NNPC said.
“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.
“Beyond this horizon, supply begins to taper without additional resource maturation, underscoring the critical importance of continued exploration and sustained investment to secure long-term output.”
