Nigeria is set to accelerate its gas-driven industrialisation with more than 60 high-priority gas demand projects slated for execution over the next ten years, according to the Nigerian National Petroleum Company Limited’s Gas Master Plan 2026.
The document obtained on Sunday shows that 30 priority gas projects are expected to be completed within the next three years, forming the backbone of Nigeria’s near-term gas expansion, while an additional 30 projects are projected to come onstream over the next decade, significantly deepening domestic gas utilisation and export capacity.
These projects, spanning Category A (near-term) and Category B (medium-term), are expected to collectively deliver 13,960 mmscf/d, reinforcing Nigeria’s industrial, domestic, and export ambitions.
The PUNCH reports that the NNPC Limited Gas Master Plan 2026 (GMP 2026) is Nigeria’s newest strategic roadmap for transforming the country’s vast natural gas resources into economic growth, energy security and industrial development. It was officially unveiled on January 30, 2026, at the NNPC Towers in Abuja in a high-profile ceremony attended by government officials, industry leaders and key stakeholders.
The unveiling marked a shift from policy formulation to disciplined, commercially focused execution of gas sector priorities, aligning with the Federal Government’s Decade of Gas Initiative and recent regulatory reforms under the Petroleum Industry Act.
The plan builds on the original 2008 Nigerian Gas Master Plan, which sought to chart a long-term vision for gas utilisation but was constrained by infrastructure and execution gaps. The 2026 version emphasises scaling gas production, expanding critical infrastructure and strengthening market linkages across LNG, power, industrial offtakers, pipelines and CNG, with a target to surpass national gas production goals of 10 billion cubic feet per day by 2027 and 12 billion cubic feet per day by 2030 while unlocking more than $60 billion in new investments.
At the event, the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, described the plan as a deliberate pivot from policy articulation to implementation, anchored on commercial viability and integrated sector-wide coordination.
“Today’s launch is not merely the unveiling of a document; it represents a deliberate shift towards a more integrated, commercially driven and execution-focused gas sector aligned with Nigeria’s development aspirations,” Ekpo said.
He added, “Nigeria is fundamentally a gas nation. With one of the largest proven gas reserves in Africa, our challenge has never been potential, but translation, translating resources into reliable supply, infrastructure into value and policy into measurable outcomes for our economy and our people.”
Government officials and private operators at the launch described the plan as a turning point in the nation’s energy transition, designed to translate abundant gas reserves into reliable domestic supply, robust export capacity and broad-based socio-economic impact.
The NNPC GMP 2026 sets out a blueprint to raise commercialised gas production to 75 per cent by 2027 and 80 per cent by 2030, eliminate routine gas flaring, and meet a Presidential mandate of 10 Bcf/d by 2027 and 12 Bcf/d by 2030.
“This master plan is a comprehensive effort to link upstream supply to domestic and export demand, integrate midstream infrastructure, and attract private sector investment,” the executive said. “It is a blueprint for a gas-driven economy.”
An analysis of the document revealed that Nigeria is targeting a total near-term gas demand of 8,110 million standard cubic feet per day (mmscf/d) through a broad mix of LNG, power, industrial, CNG and pipeline projects classified as Category A in the Master Plan 2026.
The largest share of the demand is anchored by LNG projects, led by OKLNG (1,800 mmscf/d) and NLNG Trains 7 and 8 (1,350 mmscf/d), alongside UTM, NNPC-Chevron LNG and other modular LNG schemes, most of which are expected to come onstream within three years.
The power sector is projected to absorb about 470 mmscf/d, driven by major gas-to-power projects such as GIPP Phase I, Kano IPP, Abuja IPP and Okpai II, while gas-based industries including Brass Fertiliser, NSIA-OCP and Blackrose will collectively require over 700 mmscf/d to support fertiliser, methanol and chemical production.
Smaller but fast-deploying CNG projects, spread across Abuja, Kaduna, Kano and Imo, are expected to take about 45 mmscf/d, providing quick demand activation for domestic gas.
However, the single largest demand anchor is the planned African Atlantic Gas Pipeline Phase 1 expansion, projected to transport 3,000 mmscf/d within three years, positioning Nigeria to strengthen regional gas trade while deepening domestic gas utilisation.
Beyond near-term projects, the GMP 2026 also outlines Category B projects, representing medium-term demand opportunities likely to reach FID within 1–2 years.
These projects, spanning LNG, power, GBIs, industrial parks, and pipelines, will require 5,850 mmscf/d, further reinforcing Nigeria’s gas growth trajectory. Key mid-term projects include Golar Mark II LNG, Trans-Saharan Gas Pipeline, and multiple fertiliser and methanol plants across Abuja, Kano, and Kaduna.
The demand is led by a strong pipeline of LNG projects, including Golar Mark II, Transoceanic, ACE and Kora, which together account for over 2,000 mmscf/d and are largely targeted for completion within three years, alongside other modular and platform-based LNG developments in Lekki and offshore locations.
The power sector is projected to absorb 100 mmscf/d through the MBH Alero and Ikorodu IPPs, supporting electricity supply in Lagos and its industrial corridors.
Gas-based industries form another major demand pillar, driven by large-scale fertiliser and methanol plants in Abuja, Kano and Kaduna, as well as Dangote Fertiliser and Indorama, reflecting Nigeria’s push to convert gas into higher-value industrial products.
In addition, industrial parks in Golden Bridge and Awka are expected to deepen domestic gas utilisation, while the Trans-Saharan Gas Pipeline, with a projected demand of 2,000 mmscf/d, stands out as the single largest Category B project, positioning Nigeria to expand regional gas exports over the medium term.
By combining Category A near-term and Category B medium-term projects, Nigeria is targeting nearly 14,000 mmscf/d of gas demand, spanning LNG, power, industrial parks, GBIs, CNG, and pipelines. This strategic approach aligns gas supply planning with domestic industrialisation, electricity growth, and export potential.
With proven reserves of 210 trillion cubic feet, Nigeria holds the largest gas resources in Africa and ranks among the top ten globally. Yet, only ~7.5 bcf/d is produced, with 60 per cent commercialised, highlighting enormous untapped potential.
Key supply hubs, including Gbaran, Utorogu, Assa North, Escravos, and Anyala, have been mapped to demand centres, supported by critical pipelines such as AKK, ELPS-Lekki, and GTS-4. Investments in infill wells, facility revamps, and midstream completions are expected to unlock full production potential.
With over 60 major projects planned or underway, Nigeria is positioning itself to fully unlock its vast gas reserves, boost domestic manufacturing, expand electricity access, and reinforce its role as a major global gas player.
Meanwhile, an economist and Co-founder and Chief Executive Officer of Dairy Hills, Kelvin Emmanuel, has warned that Nigeria’s ambition to unlock its vast natural gas reserves is being undermined by government control of gas pricing and output, which he said has weakened incentives for private investment in gas infrastructure.
Speaking in an interview with ARISE NEWS on Sunday, Emmanuel argued that despite Nigeria holding one of the world’s largest proven gas reserves, the domestic gas market remains heavily distorted by regulation, particularly price caps imposed by the government.
According to him, these controls have effectively created a subsidy regime that discourages producers from committing capital to pipelines, processing facilities and offshore gas evacuation projects.
“When you have a national reference code that the government has instituted to cap the price of gas, it is because it is afraid that if gas prices float to generating companies, electricity tariffs will go up, and that will have political consequences,” he said.
Emmanuel explained that about 45 per cent of gas supplied to Nigeria’s domestic market is sold under regulated prices rather than through a willing-buyer, willing-seller framework, making gas investments commercially unattractive.
“The methane gas that goes to the domestic market in Nigeria, about 45 per cent of it is capped by the government. The price is regulated. It is not a willing-buyer, willing-seller market. There is no incentive for companies to invest in infrastructure,” he stated.
He further highlighted Nigeria’s vast gas endowment, noting that the country holds about 210 trillion standard cubic feet of gas, with more than half classified as non-associated gas, which requires dedicated investment to develop.
“Fifty-two per cent of this 210 trillion standard cubic feet is non-associated gas,” Emmanuel said, adding that much of the associated gas currently produced is either trapped, reinjected or flared.
“About 60 per cent is trapped, roughly 30 per cent is re-injected for well optimisation, and about 10 per cent is flared.”
According to him, unlocking gas from deep offshore fields requires massive capital outlay on pipelines and central processing facilities, as most of Nigeria’s offshore gas is produced as wet gas that must be treated before use.
“For you to get associated gas deep offshore, you need to build pipeline infrastructure through the water, which is very expensive. You then have to take it to a central processing facility because it is wet gas. You must treat it into lean gas before sending it into pipelines, compressing it for CNG or supplying it to NLNG,” he explained.
Emmanuel said investors are reluctant to fund such infrastructure because they do not see a clear path to cost recovery under the current pricing regime.
“If they don’t see a clear line of sight, they won’t invest. There is no incentive for companies to build pipelines to take gas to the market. Even the gas master plan talks about the absence of central processing facilities,” he said, noting that floating LNG projects such as Chevron’s planned FLNG and UTM’s FLNG have remained slow-moving for years.
Beyond gas pricing, Emmanuel linked Nigeria’s gas challenges to deep structural problems in the power sector, including poor revenue assurance and sector-wide illiquidity. He said gas suppliers are owed by power generation companies, especially for electricity supplied to Band B to D customers.
“The GenCos owe gas aggregators today. The tariff is between three and four cents per kilowatt-hour, which is very low. There is no proper revenue assurance in the system. The DisCos are illiquid. TCN is illiquid and lacks infrastructure,” he said.
He argued that the government’s reluctance to liberalise gas pricing is driven largely by fears of higher electricity tariffs and political backlash, but warned that maintaining the status quo would continue to stall investment.
“If you keep the status quo, companies will not invest in infrastructure. There is no incentive,” Emmanuel said.
The economist also questioned how the NNPC Ltd plans to finance the large-scale infrastructure outlined in its gas master plan, describing the company’s financial position as constrained.
“NNPC is in a precarious situation. It doesn’t have the finance, it doesn’t have the leverage. I don’t think the board wants to go into more forward sale agreements tied to existing assets, which is what we call financialisation. Between 2019 and 2024, that brought in about $40bn in loans,” he said.
He asked what strategy NNPC intends to deploy to raise capital, either through joint ventures or sole-risk investments. “What is the strategy for raising capital to back their plan? Because I don’t see the path to raising capital,” he added.
Emmanuel concluded that without pricing reform, open-access pipeline models and a clear financing strategy, Nigeria’s gas ambitions may remain largely aspirational.
“They need to move from a closed-loop model to an open-access model, where operators can share ownership of pipelines. The problem NNPC has is translating plans to reality. That has always been the challenge,” he said.
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