The Federal Government has secured about $3.5 billion in committed investments across four major gas projects as part of efforts to increase domestic gas production, expand infrastructure and position natural gas as a key driver of industrial growth and energy security.
Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, disclosed this at a briefing, saying the investments reflected growing investor confidence in Nigeria’s gas sector.
The projects, which have reached Final Investment Decision (FID), include the $122 million Iseni Gas Project in Sagbama Local Government Area of Bayelsa State, within the Okpokunou Cluster of Oil Mining Lease (OML) 35; the $566 million Ubeta Gas Project, located onshore within OML 58 in Rivers State; the $2 billion HI Project in the shallow offshore Niger Delta basin, within OML 144 near Bayelsa State; and the $800 million Ima Project in shallow waters offshore, spanning OMLs 112 and 117 near Bonny Island in Rivers State.
Ekpo also disclosed that the $3.5 billion Brass Methanol Project has moved closer to execution following the resolution of its Gas Sales and Purchase Agreement.
According to the minister, the investments are part of the government’s broader strategy to harness Nigeria’s vast gas resources for economic development.
He, however, stressed the need for faster project execution to translate the country’s abundant gas reserves into reliable energy supply, industrial output and economic value.
Nigeria’s proven natural gas reserves rose to 215.19 trillion cubic feet (Tcf) as of January 2026, up from 208.83 Tcf in 2023. Average gas production has also increased from about 6.86 billion cubic feet per day (Bcf/d) to 7.5 Bcf/d, while domestic gas supply has surpassed 2 Bcf/d.
The Federal Government is targeting gas production of 10 Bcf/d in the near term and 12 Bcf/d by 2030.
The additional gas supply is expected to support power generation, manufacturing, fertiliser and petrochemical production, liquefied natural gas (LNG), transportation and other domestic and export markets.
NLNG Capacity, Pipeline Expansion
Ekpo said the utilisation rate of Nigeria LNG Limited (NLNG) has recovered significantly, rising from about 59 per cent in 2023 to 87 per cent in 2026.
He said the completion of Train 7, expected in June 2027, would further strengthen the country’s LNG capacity.
“ The project will add about eight million tonnes per annum (MTPA) to NLNG’s existing 22 MTPA capacity, taking total capacity to approximately 30 MTPA,” the minister said.
The minister also announced that the Obiafu-Obrikom-Oben (OB3) gas pipeline is now 100 per cent complete, with pre-commissioning activities concluded ahead of first gas following the completion of the River Niger crossing.
The 2 Bcf/d pipeline is expected to unlock more than 500 million standard cubic feet per day (MMscf/d) of additional domestic gas supply.
Meanwhile, the Ajaokuta-Kaduna-Kano (AKK) gas pipeline is approximately 95 per cent complete, according to the minister.
Read Also: fuel-pump-fraud-nmdpra-fights-for-every-litre
₦671bn Gas Infrastructure Fund Deployment
The Midstream and Downstream Gas Infrastructure Fund (MDGIF) has so far deployed about ₦671 billion, attracting approximately ₦1.6 trillion in private-sector investments across 31 projects and 205 infrastructure assets.
When fully operational, the projects are expected to deliver about 475 MMscf/d of additional gas to the domestic market.
The Federal Government is targeting approximately $30 billion in total investments in the gas sector by 2030.
Ekpo further disclosed that the National Economic Council had approved about ₦185 billion in validated legacy debts owed to upstream gas producers.
The settlement, he said, would improve liquidity across the gas value chain, strengthen commercial discipline, support gas supply to power generation companies and help restore investor confidence in the gas-to-power market.
CNG Programme Gains Momentum
The government’s Compressed Natural Gas (CNG) programme has also recorded significant growth, with the number of vehicle conversions rising from about 11,000 in 2023 to more than 120,000 currently.
Ekpo said the government is targeting at least one million CNG-powered vehicles and up to 1,000 refuelling stations across the country.
The initiative is expected to expand access to cheaper and cleaner transportation fuel while reducing reliance on petrol and supporting the development of a domestic gas-based transportation market.
On Liquefied Petroleum Gas (LPG), the government is targeting five million households by 2030 as part of efforts to increase access to cleaner cooking fuel.
Ekpo said President Bola Tinubu had approved the extension of the National Grassroots LPG Penetration Programme to 2060, while the government is distributing 27,000 free LPG cylinders in each state under the programme.
Government Targets End to Gas Flaring
As part of efforts to reduce gas flaring, the government has awarded contracts to 42 companies to commercialise flare gas.
The projects are expected to convert previously flared gas into useful products, including energy, feedstock, LPG, CNG and electricity.
Ekpo said the administration’s broader “Decade of Gas” programme remains focused on increasing gas supply, developing domestic demand, expanding infrastructure, attracting investment and reducing emissions.
He said the government’s objective was to transform Nigeria’s abundant gas resources into a reliable source of energy and a catalyst for industrialisation, economic diversification and sustainable development.
