Nigeria’s Gas Sector Revolution: Ekpo Highlights Transformation, Infrastructure Boom

By Patience Chat Moses
At the opening ceremony of the 8th Nigeria International Energy Summit (NIES) in Abuja, Minister of State for Petroleum Resources (Gas), Hon. Ekperikpe Ekpo, delivered a compelling address highlighting the transformative strides made within Nigeria’s gas sector. Ekpo underscored the significant advancements in infrastructure development, strategic policy reforms, and the robust implementation of domestic utilisation initiatives.

Addressing a distinguished gathering of policymakers, international investors, and industry experts, Ekpo emphasised the summit’s central theme, “Bridging Continents: Connecting Investors Worldwide with Africa’s Energy Potential,” as a clarion call for enhanced collaboration and strategic partnerships. A collaborative approach, which he noted, is essential to unlocking the vast and untapped energy resources that Africa possesses.

Significant Achievements in Nigeria’s Gas Sector
Minister Ekpo detailed the remarkable growth trajectory of Nigeria’s gas sector over the past two years, attributing this progress to the strategic vision embodied in President Bola Ahmed Tinubu’s Decade of Gas Initiative (DOI). Launched in 2021, the DOI aims to position Nigeria as a leading gas-powered economy by 2030, driven by comprehensive infrastructure expansion, increased domestic utilisation, and strategic export growth. This initiative is vital, considering Nigeria’s position as holding some of the largest proven natural gas reserves in Africa.

Key Infrastructure Developments and Policy Reforms
A cornerstone of Nigeria’s national gas expansion drive is the ambitious Ajaokuta–Kaduna–Kano (AKK) Gas Pipeline project. This monumental infrastructure undertaking, spanning 614 kilometres and representing a $2.8 billion investment, is designed to significantly enhance gas supply to vital industrial hubs across Nigeria. The project is on track for completion in 2025, promising to revolutionise the country’s energy landscape by boosting power generation and industrial output.

The enactment of the Petroleum Industry Act (PIA) in 2021 serves as a pivotal catalyst, fostering a more competitive and transparent oil and gas industry environment. This landmark legislation has facilitated the successful commercialisation of the Nigerian National Petroleum Company (NNPC), the establishment of host community development trusts, and the issuance of Nigeria’s inaugural petroleum exploration license under the PIA framework. This act is also crucial in the reduction of gas flaring.

Strategic Investments in LNG and Gas-Based Industries
In a significant milestone achieved in September 2024, Nigeria granted UTM Offshore Limited the first-ever license for a floating liquefied natural gas (LNG) plant. This groundbreaking project, executed in partnership with Seplat’s Oil Mining Lease 104, is projected to produce 2.8 million metric tons per annum (MTPA) of LNG and 500,000 metric tons of liquefied petroleum gas (LPG), substantially boosting Nigeria’s export capacity while simultaneously mitigating gas flaring, a major environmental concern.

October 2024 witnessed another pivotal development as Shell, TotalEnergies, and Eni formalised an agreement to supply 270 million standard cubic feet of gas per day to the $3.5 billion Brass fertilizer and petrochemical plant in Bayelsa State. This strategic initiative is projected to generate $1.5 billion in annual export revenue, reduce fertilizer imports by 30%, and yield approximately $200 million in foreign exchange savings for Nigeria, strengthening the nation’s economy.

Promoting Affordable and Sustainable Energy Solutions
In response to the 2023 removal of fuel subsidies, the government launched a nationwide Compressed Natural Gas (CNG) initiative to provide cost-effective and environmentally sustainable transportation alternatives. With a target of converting 100,000 vehicles and a $200 million investment in CNG infrastructure, this initiative aims to curtail transportation costs and foster sustainability. This also helps Nigeria move forward in its Energy Transition Plan.

Further bolstering the gas sector, in September 2024, the Federal Government, through the Midstream Downstream Gas Infrastructure Fund (MDGIF), allocated 122 billion naira to six companies, aiming to transform Nigeria’s gas value chain and accelerate development across the sector, and improve domestic gas usage.

Hon. Ekpo reaffirmed Nigeria’s unwavering commitment to leveraging natural gas as a catalyst for economic diversification, industrialisation, and a sustainable energy transition. He called upon stakeholders to utilise NIES 2025 as a platform for forging new strategic partnerships, exploring innovative financing mechanisms, and accelerating the development of the gas sector.