NIGERIA’S midstream gas sector faced a challenging month in July, as the country’s major gas processing facilities operated at an average capacity utilisation of just 49.21 percent.
According to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA)’s performance factsheet, there were severe operational bottlenecks and infrastructure limitations across the country, with facilities processing an average volume of 7.966 billion cubic feet per day (Bcf/day).
The report said the fact that while select localised assets showed high performance, the wider sector struggled with sub-optimal efficiency.
It gave a detailed breakdown of Nigeria’s primary gas assets, revealing massive disparities in processing performance.
The Soku Gas Plant emerged as the top performer, running at a near-perfect utilisation rate of 99.56 per cent. The Gbaran Ubie Gas Plant also maintained a robust output, tracking a 92.79 per cent utilisation rate on a design capacity of 1.250 Bcf/day.
On the other hand, severe underutilisation plagued other critical pieces of national infrastructure. The OB/OB AG Gas Plant recorded the lowest performance, operating at just 22.95 per cent utilisation, despite possessing a sizable design capacity of 1.300 Bcf/day.
Furthermore, the largest processing asset, NLNG (Train 1-6), which accounts for a massive 3.500 Bcf/day design capacity, could only manage a 78.82 per cent utilisation rate, reflecting a downward trend from previous periods.
The NMDPRA’s factsheet attributed these volatile numbers to operational constraints, noting that utilisation rates across various hubs are actively impacted by ongoing bottlenecking, supply disruptions, and critical asset optimisation needs.
Also, the report showed that the downstream segment felt the pressure of the processing bottlenecks, as total natural gas utilisation fell to 4.723 Bcf/day in July 2026.
This signifies a noticeable slump compared to the peak volumes seen earlier in the year, such as the 5.141 Bcf/day distributed in April 2026.
On the export market, the report showed that the average daily gas supplied to the Nigeria LNG (NLNG) plant stood at 2.695 Bcf/day, accompanied by a downward performance indicator.
On the domestic end, local industries and power grids faced tightening constraints as the average daily gas supplied to the domestic market contracted to 2.028 Bcf/day.
Industry analysts warned that if major processing corridors like the OB/OB facility do not recover their operational footprints, the persistent deficits in domestic supply could lead to supply volatility for domestic gas-based industries and power generation networks across the country.
The report showed a significant progress on critical pipeline infrastructure alongside a noticeable dip in domestic industrial gas consumption.
It also showed that the pipeline megaprojects are nearing the finish line as the landmark Ajaokuta-Kaduna-Kano (AKK) gas pipeline project has reached a critical milestone, hitting a 94.8 per cent completion rate as of July 2026.
The pipeline is expected to serve as the backbone of northern Nigeria’s industrial transit network, connecting gas supplies from the south to power plants and factories in the north.
Simultaneously, the vital Obiafu-Obrikom-Oben (OB3) pipeline project is on the cusp of operation.
The main OB3 project has reached 96 per cent completion, while its highly anticipated River Niger Crossing section is now 100 per cent complete. Other major distribution links showed upward momentum; the ELPS Midline Compressor Project advanced to 95.77 per cent, while the Odidi-Warri Expansion and the Escravos-Odidi (EOP) projects reached 75.47 per cent and 25.72 per cent completion, respectively.
Domestically, daily gas utilisation reflected diverging trends.
According to the report, the gas allocated to the power sector saw positive growth, averaging 0.534 billion cubic feet per day (Bcf/day), indicating a stabilisation in gas-to-electricity distribution across the national grid.
However, it showed that the growth came at the expense of local commercial and industrial sectors as gas supplied to commercial markets fell to 0.552 Bcf/day, and supply to gas-based heavy industries dropped to 0.507 Bcf/day, signaling a temporary slowdown in industrial uptake despite the expanding infrastructure.
