The Nigerian National Petroleum Company (NNPC) Limited has said Nigeria will require about $22 billion in investment to expand its gas pipeline infrastructure.
Gatekeepers News reports that the estimate is contained in the NNPC Gas Master Plan 2026 report obtained by TheCable.
“Current gas pipeline infrastructure in development plans could require up to $22 billion investment,” the report stated.
The national oil company unveiled the Gas Master Plan on January 20 as part of efforts to reposition Nigeria’s gas sector as a driver of industrialisation, energy security and sustainable economic growth.
According to the report, performance under the Domestic Gas Delivery Obligation (DGDO) has improved from about 50 per cent five years ago to 70 per cent in 2024.
However, the company warned that demand is projected to outstrip supply across all scenarios by 2030, making new investments urgent.
“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 said.
NNPC noted that domestic gas demand will continue to be driven by the power, gas-based industries (GBI) and commercial sectors, while export demand will remain largely dependent on liquefied natural gas (LNG).
“Export demand will continue to be driven by LNG which accounts for about 70 per cent of export demand. NLNG historically accounted for over 95 per cent of these volumes,” it said.
On infrastructure, the company said Nigeria currently has over 2,500 kilometres of gas pipelines, with expansion plans through major projects such as the Ajaokuta–Kaduna–Kano (AKK) and Obiafu–Obrikom–Oben (OB3) pipelines to improve nationwide gas distribution.
NNPC also said it plans to raise gas commercialisation from the current 60 per cent of production to 75 per cent 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,” the report stated.
“Achieving these outcomes requires consistent investment in CPF reliability, pipeline revamps, and hub interconnections.”
The Gas Master Plan outlook projects a strong upward trend in supply, with production expected to reach 10 billion standard cubic feet per day (Bcf/d) by 2027, in line 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,” the report said.
“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.”
NNPC also disclosed that Nigeria has Africa’s largest proven gas reserves at 210 trillion cubic feet (TCF) and ranks among the top 10 countries globally.
Despite this, the country ranks only 16th in global gas production, highlighting what the company described as significant untapped potential.
