FG Lists Achievements in Gas Sector, Puts FID Projects at $3.5 Billion

***Ekpo says total output now 7.5bcf/d, domestic supply at over 2bcf/d **

*NLNG capacity utilisation climbs from 59% to 87% under Tinubu

Emmanuel Addeh in Abuja

The federal government has listed a series of developments in Nigeria’s gas sector, including about $3.5 billion in fresh investments that have reached Final Investment Decision (FID) under President Bola Tinubu, reiterating that it plans to turn the country’s vast gas reserves into a major source of industrial growth.

Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, disclosed this in Abuja at the weekend during a media parley, mentioning the four projects that had reached FID as Iseni Project valued at approximately $122 million, Ubeta at $566 million, the HI Project at $2 billion and the Ima Project at $800 million.

According to him, the four projects collectively represented approximately $3.5 billion in committed investment, while the approximately $3.5 billion Brass Methanol Project had also advanced towards execution, following the resolution of its Gas Sales and Purchase Agreement (GSPA).

Ekpo said the developments were evidence that investor confidence was returning to the gas sector, stressing that the federal government’s focus was now on increasing production, accelerating infrastructure development, expanding domestic utilisation and ensuring that gas resources translated into tangible economic benefits.
“This administration will therefore remain accountable for turning these approvals —and Nigeria’s gas wealth—into reliable energy, stronger industries, more jobs and lasting prosperity. The investment commitments now before us show that this next phase is already taking shape.

“That confidence is evident in four major gas projects that have reached Final Investment Decision (FID): Iseni Project, at approximately $122 million; Ubeta Project, at approximately $566 million; HI Project, at $2 billion; and Ima Project, at $800 million. Together, they account for approximately $3.5 billion in committed investment.

“The approximately $3.5 billion Brass Methanol Project has also advanced towards execution following resolution of its Gas Sales and Purchase Agreement. These are not merely project milestones; they are evidence that responsible investment can create enduring domestic value, strengthen productive capacity and generate employment,” he stated.

He reiterated Nigeria’s proven 2P gas reserves had risen from approximately 208.83 trillion cubic feet (TCF) in 2023 to 215.19 TCF as at January 1, 2026, while average gas production increased from about 6.86 billion cubic feet per day (bcf/d) to approximately 7.5 bcf/d.

Domestic gas supply, he added, had now crossed 2 bcf/d, with the federal government targeting production of 10 bcf/d by 2027 and 12 bcf/d by 2030. He explained that the expansion was critical to meeting growing demand from power generation, industries, fertiliser and petrochemical plants, LNG, transportation and other domestic and export markets.

The minister also disclosed that Nigeria LNG’s nameplate capacity utilisation had recovered significantly, rising from approximately 59 per cent at the beginning of the administration in 2023 to about 87 per cent year-to-date in 2026.
He attributed the improvement partly to increased stability in the Niger Delta and greater participation by indigenous companies in upstream production. According to him, the momentum would be further strengthened by the Train 7 project, which is under construction and targeted for completion in June 2027.

He said the project would add approximately 8 million tonnes per annum to the existing 22 million tonnes of LNG capacity, taking total capacity to about 30 million tonnes per annum.
“Nigeria LNG is also recording a strong operational recovery. At the start of this administration in 2023, nameplate capacity utilisation stood at approximately 59 per cent. Year-to-date in 2026, it has risen to about 87 per cent.
“That momentum will be strengthened by Train 7, now under construction and targeted for completion in June 2027. The project will add approximately 8 million tonnes per annum (MTPA) to the existing 22 MTPA capacity—taking total production capacity to about 30 MTPA,” he stressed.

Ekpo said the expansion would strengthen Nigeria’s gas-processing capacity, increase export potential, support domestic LPG supply and reinforce the country’s position in the global LNG market.
On the government’s wider gas policy, the minister said the institutionalisation of the Decade of Gas initiative recently approved by President Bola Tinubu would provide an enduring framework for coordinating policies, implementation and accountability across the gas value chain.

He said the initiative would focus on increasing supply, creating demand, expanding infrastructure, attracting investment, developing skills, reforming the market and reducing emissions.
He stated that the ultimate objective was to use gas to support more reliable electricity, stronger industries, cleaner transportation and cooking, job creation, export earnings and economic diversification.

On gas-to-power, Ekpo disclosed that the National Economic Council (NEC) had approved approximately N185 billion for validated legacy debts owed to upstream gas producers. He said the payment was not simply about settling old obligations but was intended to restore commercial discipline, improve gas supply reliability and rebuild investors’ confidence in the power and gas sectors.

According to him, some power plants that had previously struggled to secure gas because of the indebtedness of the power sector to gas producers were already recording improvements following the payment.
On gas infrastructure, the minister said the OB3 gas pipeline was now 100 per cent complete, with pre-commissioning concluded in preparation for first gas after the completion of the technically challenging River Niger crossing.
According to him, the pipeline has a capacity to transport about 2 bcf/d and is expected to unlock more than 500 million standard cubic feet per day (MMscf/d) of incremental domestic gas supply.

The minister added that the Ajaokuta-Kaduna-Kano (AKK) gas pipeline was approximately 95 per cent complete and was expected to be rounded off in 2027. Ekpo further disclosed that through the Midstream and Downstream Gas Infrastructure Fund (MDGIF), N671 billion in public funds had attracted approximately N1.6 trillion in private investment.
He said the funding covered 31 projects and 205 infrastructure assets which, when fully operational, could deliver about 475 MMscf/d of gas to the domestic market. He put the government’s target for investment in the gas sector at approximately $30 billion by 2030.

The minister also highlighted the expansion of Compressed Natural Gas (CNG) as part of the government’s effort to reduce transportation costs, noting that the number of converted CNG-powered vehicles had increased from approximately 11,000 in 2023 to more than 120,000.

He said the target was to reach at least 1 million CNG-powered vehicles and up to 1,000 refuelling stations nationwide, but stressed that the CNG expansion would be largely driven by the private sector, with the government providing the regulatory framework and support needed to ensure safety and encourage investment.
Ekpo pointed out that the government was also supporting investors to establish mobile and daughter CNG stations, particularly in locations without direct access to conventional gas pipelines.

On LPG, the minister said the government’s immediate ambition was to reach 5 million households by 2030, while the President had approved the extension of the National Grassroots LPG Penetration Programme to 2060.
He said the long-term programme was expected to provide a pathway to reach more than 10 million households and sustain the adoption of cleaner cooking across the country.

The minister also said the government had directed Nigeria LNG and other producers to prioritise the domestic market for LPG, arguing that Nigeria, as a major gas-producing country, should ensure that available domestic volumes were not diverted from local consumers.

He disclosed that discussions were ongoing to resolve the challenge surrounding Chevron’s deep offshore LPG production, with the government working towards ensuring that the relevant volumes were domesticated.

“The only area we were having a little challenge because of the mix was Chevron. And it is deep offshore. So we are working on how to convert it to our mix within the country. What they are producing is not 80-20…I directed the NMDPRA to work out the way it should be done so that they will domesticate everything. And they are progressing,” he stated.

On gas flaring, Ekpo stated that 42 companies had been awarded contracts to convert flare gas into energy, feedstock, LPG, CNG and power. He said about 20 of the companies had made significant progress, although some had encountered resistance and technical challenges in accessing flare sites.
The minister said the government remained committed to ending routine gas flaring by 2030, adding that the volume of gas being flared had already reduced significantly compared with previous years.

He explained that operators that continued to flare gas would either have to deploy appropriate technology to capture and commercialise the gas or provide access for companies with the capacity to utilise it.

Ekpo also stressed that deep offshore producers were required by law to meet their domestic gas obligations before exporting their production, noting that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) had responsibility for enforcing the requirement.

He said the government would not intervene in disputes where operators were challenging their domestic supply obligations because the requirement was established by law.

Beyond domestic developments, Ekpo pointed to Nigeria’s growing role in international gas diplomacy, recalling that Philip Mshelbila assumed office on January 1, 2026 as Secretary General of the Gas Exporting Countries Forum (GECF), becoming the first Nigerian to occupy the position.

He added that he was also serving as President of the 2026 GECF Ministerial Meeting and Chairman of the West Africa Gas Pipeline (WAGP) Project Committee of Ministers for 2026.

According to him, Nigeria’s acceptance as an Association Country of the International Energy Agency (IEA) would also deepen the country’s participation in global energy discussions and potentially improve access to technology, funding and investment.

“We will use these positions with purpose. Nigeria will champion timely investment across the gas value chain; stable, secure and transparent markets; equitable access to affordable energy; and a just and orderly energy transition,” he stressed.

Ekpo said the next phase of the government’s gas agenda would be defined by increased production, faster infrastructure delivery, greater investment, expanded CNG and LPG access, reduced gas flaring and improved benefits for producing communities.

“We have made substantial progress, but progress is not the destination; it is the foundation for the work ahead. The true measure of policy is sustained delivery,” he emphasised.