Gas Master Plan projects demand to outpace supply by 2030 as Nigeria targets higher production, commercialisation and infrastructure expansion……
The Nigerian National Petroleum Company Limited has projected that about $22bn will be required to expand the country’s gas pipeline infrastructure, underscoring the scale of investment needed to unlock Nigeria’s gas potential and support long-term energy security.
The estimate was contained in the NNPC Gas Master Plan 2026, part of broader efforts by the national oil company to reposition gas as a key driver of industrialisation, economic growth and energy transition.
NNPC had unveiled the Gas Master Plan on January 20 as part of its strategy to strengthen Nigeria’s gas value chain and deepen domestic utilisation.
According to the report, “Current gas pipeline infrastructure in development plans could require up to $22bn investment.”
The company noted that performance under the Domestic Gas Delivery Obligation has improved significantly, rising from about 50 percent five years ago to roughly 70 percent in 2024.
However, the outlook indicates mounting pressure on supply in the coming years.
“Looking forward, gas demand is set to exceed gas supply in all scenarios by 2030, indicating an urgent need to incentivise gas development and supply whilst prioritising high economic impact demand,” the report stated.
NNPC said domestic demand will continue to be driven largely by the power sector, gas-based industries and commercial users, while export demand will remain dominated by liquefied natural gas, which accounts for about 70 percent of export volumes. Historically, the Nigeria LNG project has contributed more than 95 percent of these exports.
On transportation infrastructure, the company noted that Nigeria currently has over 2,500 kilometres of gas pipelines, with expansion planned through major projects such as the Ajaokuta-Kaduna-Kano pipeline and the Obiafu-Obrikom-Oben pipeline. These projects are expected to significantly improve gas distribution across the country.
NNPC also outlined plans to increase gas commercialisation from the current 60 percent of production to 75 percent by 2027 and 80 percent by 2030.
“By 2030, monetisation is projected to increase to about 80 percent of produced gas, supported by infrastructure readiness, sustained investment and commitment in upstream development, reduced reinjection and flaring,” the company said.
It added that achieving these targets would require continued investment in central processing facility reliability, pipeline rehabilitation and interconnection of gas hubs.
The outlook from the Gas Master Plan points to strong growth in supply potential, with production expected to reach 10 billion standard cubic feet per day by 2027, aligning with the presidential mandate for increased gas output.
By 2030, supply could rise further to 15 billion cubic feet per day as major hubs including Gbaran-Soku-Obagi-OBOB, Utorogu-Ughelli, Otumara-Forcados-Tunu and key offshore clusters ramp up production.
However, the report warned that supply could begin to decline beyond that period without sustained exploration and investment, highlighting the need for continued resource development to secure long-term output.
NNPC noted that Nigeria holds the largest proven gas reserves in Africa at about 210 trillion cubic feet and ranks among the top 10 countries globally in terms of gas reserves, signalling significant potential to meet domestic needs and strengthen its position in the global gas market.
Despite this, Nigeria currently ranks 16th in global gas production, reflecting substantial untapped capacity and the need for further investment to fully harness its gas resources.
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