Nigeria’s gas expansion faces commercialisation hurdles despite $30.5b export projects

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Nigeria’s ambition to deepen domestic gas utilisation and strengthen its position as a leading gas supplier in Africa is facing a critical commercialisation test, as industry stakeholders call for greater investment in infrastructure, market development and regional cooperation to complement rising production.

The push comes as three major gas projects worth an estimated $30.5 billion gather momentum, raising prospects for increased exports of Nigerian gas to Europe and other international markets.

Speaking at the 25th NOG Energy Week in Abuja, stakeholders said Nigeria’s gas development strategy must move beyond production targets to creating a sustainable market capable of supporting electricity generation, industrialisation and cross-border energy trade.

Executive Vice President, Gas, Power and New Energy at the Nigerian National Petroleum Company Limited (NNPC Ltd), Olalekan Ogunleye, said achieving the country’s target of producing 12 billion cubic feet of gas per day by 2030 would require coordinated interventions across the entire gas value chain.

“The target to produce 12 billion cubic feet of gas per day by 2030 is tied to the presidential mandate on gas development, and there are also other investment targets required to support it,” Ogunleye said.

He stressed that the objective was not merely to increase production but to ensure greater utilisation of gas across multiple sectors of the economy.

According to him, initiatives such as the NNPC Gas Consortium and strategic partnerships are intended to provide a structured pathway towards meeting the production target.

Ogunleye said increased gas production would boost supplies for electricity generation, industrial activities and other energy applications.

“Between now and the end of 2030, we expect to increase gas production significantly. That means there will be more gas for power generation, more gas for industries and many other energy applications,” he said.

He also highlighted Nigeria’s strategic geographical location, saying the country must leverage its proximity to regional and international markets to maximise gas export opportunities.

“Because of our geographical proximity to markets, we must take advantage of our location and actualise these major export projects,” he added.

Meanwhile, the Managing Director of the West African Gas Pipeline Company Limited (WAGPCo), Abbey Bodunrin, projected increased gas supply from Nigeria to neighbouring West African countries as the company seeks to maximise utilisation of its 690-kilometre pipeline linking Nigeria, Benin, Togo and Ghana.

According to Bodunrin, the pipeline, which commenced commercial operations in 2011, has advanced regional energy integration and strengthened cross-border cooperation.

Also speaking at the conference, Director-General of Morocco’s National Office of Hydrocarbons and Mines, Amina Benkhadra, said Africa’s abundant gas resources had yet to translate into significant economic benefits because of inadequate infrastructure and limited regional integration.

She said the proposed African Gas Pipeline would expand access to energy, support industrial growth and strengthen economic development across the continent.

Meanwhile, UTM Offshore secured a 15-year gas supply agreement for its proposed $3 billion Liquefied Natural Gas (LNG) project, a development expected to support the project’s final investment decision.

Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, also disclosed that significant progress had been made on the $25 billion Nigeria-Morocco Gas Pipeline and the proposed $2.5 billion Nigeria-Equatorial Guinea Gas Pipeline.

The developments come as the Federal Government continues efforts to expand domestic gas utilisation through the completion of strategic infrastructure projects, including the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline and the Obiafu-Obrikom-Oben (OB3) Gas Pipeline. The projects are expected to boost power generation, stimulate gas-based industries and reduce dependence on imported cooking gas.

The government is also seeking to capitalise on growing global demand for natural gas as Europe diversifies its energy sources and increases reliance on lower-carbon transition fuels.

Speaking at the conference, Ekpo described the regional pipeline projects as transformative infrastructure that would reshape Nigeria’s gas industry.

“These projects represent strategic arteries of shared African prosperity, resilience and global relevance,” he said, adding that they would unlock stranded gas resources while strengthening regional integration and economic cooperation.

The Nigeria-Morocco Gas Pipeline, also known as the Africa-Atlantic Gas Pipeline, is among Africa’s most ambitious energy infrastructure projects. Stretching between 5,600 and 6,900 kilometres along the West African coastline, the pipeline is expected to transport Nigerian gas to Morocco before connecting with existing European gas networks.

However, the project is expected to face security challenges arising from instability in parts of the Sahel region.

Nigeria’s Ministry of Foreign Affairs has disclosed that President Bola Tinubu and Morocco’s King Mohammed VI are expected to sign an intergovernmental agreement during the fourth quarter of 2026 following the completion of preliminary technical studies.

The announcement followed discussions between the Minister of Foreign Affairs, Bianca Odumegwu-Ojukwu, and Morocco’s Foreign Minister, Nasser Bourita, aimed at advancing the long-delayed project into its implementation phase.

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