Major Gas Investment Looms as FG Scrutinises 215 Projects for $20 Billion Funding
- The NMDPRA said it is reviewing 215 gas utilisation projects and targeting investments worth $20 billion
- The agency said it has identified 70 of the 215 projects are top priority, with a demand potential of 15 billion standard cubic feet per day
- The federal government is planning to significantly increase Nigeria's gas production and domestic utilisation by 2030
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Oluwatobi Odeyinka is a business editor at Legit.ng covering energy, money market, tech and macroeconomic trends in Nigeria
The Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has said it is reviewing 215 gas utilisation projects, and it has identified 70 of them that can attract investments worth $20 billion.
This was disclosed by the Authority's chief executive, Engr. Farouk Ahmed, at the opening session of the Gas Utilisation Unlock Validation Series, held on the sidelines of the ongoing 43rd annual conference of the Nigerian Association of Petroleum Explorationists (NAPE) in Lagos.
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The federal government declared a Decade of Gas plan in 2020 in a move to increase gas utilisation and harness the country’s over 200 trillion proven natural gas reserves.
The ambitious plan, which was launched in 2020 by former President Muhammadu Buhari, aims to make Nigeria a gas-powered economy.
Projects to raise gas demand
At the session, the NMDPRA boss noted that the 70 gas projects identified from the 215 reviewed are high-impact projects with a combined potential demand of 15 billion standard cubic feet of gas per day (bscf/d).
If actualised, these projects would create thousands of jobs and accelerate industrial growth in the country, driving the strategic objectives of the Decade of Gas plan.
The Authority's chief executive explained that the projects were assessed based on associated infrastructure needs, market linkages, supply zones, and existing gaps requiring policy and investment interventions.
He added that the projects spread across six major demand clusters: power generation, fertiliser production, petrochemicals, industrial feedstock, CNG/LPG, and export markets.
Barriers to gas sector growth
Ahmed, in his presentation, equally noted some hindrances to growth in Nigeria’s gas sector, including infrastructure gaps, regulatory overlaps, and market uncertainties.
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He revealed that the Decade of Gas Secretariat has begun a three-week exercise to validate project data, align gas demand with supply, set appropriate pricing frameworks, and pinpoint the infrastructure and support systems required for effective execution.
He said:
“This validation series is not merely an audit of projects but a springboard for accelerated implementation. Each project team will work closely with the NMDPRA and the Decade of Gas Secretariat to validate assumptions, remove bottlenecks, and assign clear responsibilities and timelines.”
Affirming NMDPRA’s commitment, Ahmed urged operators, regulators, and investors to collaborate strategically to deepen gas utilisation and help Nigeria achieve its goal of being a gas-powered economy by 2030.
“Time is not on our side. We must ensure that within the next 12 to 24 months, we begin commissioning critical gas development projects that will drive the goals of the Decade of Gas,” he advised.
Nigeria to increase gas production by 2030
The Minister of State for Petroleum (Gas), Rt. Hon. Ekperikpe Ekpo, who delivered a keynote address at the NAPE convention, said the Decade of Gas initiative can help Nigeria increase gas production by an additional 4.7 billion cubic feet per day by 2030.
He urged stakeholders to collaborate to increase domestic utilisation of gas and also increase export revenues, in line with the 2030 target.
“This marks the initial phase of a ten-year strategy to reposition Nigeria as a gas-driven industrial power, delivering clean energy, strengthening industries, and generating export revenues through coordinated public–private collaboration,” he said.
Analysts have said that increasing local utilisation of gas requires improved investment in gas-to-power, clean cooking, and gas mobility infrastructure.
FG announces big gas project
Meanwhile, Legit.ng earlier reported that the federal government, earlier this year, commissioned the country’s first modular Liquefied Petroleum Gas (LPG) extraction plant and a 20-megawatt gas-to-power project.
The projects were developed by Green Energy and Lekoil Joint Venture (JV), the joint operators of the Otakikpo field in oil-rich Rivers State.
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Source: Legit.ng
