Gas
Nigeria launches $100m South-east gas pipeline
The federal government has initiated a $100 million gas distribution network to connect resources to commercial centres across five states.
Key points
- A 400-kilometre pipeline will link the ANOH gas processing plant in Imo State to industrial hubs in Enugu, Anambra, Imo, Abia and Ebonyi.
- The project targets 150 prospective customers with an estimated demand of 254 million standard cubic feet of gas per day.
- Construction is scheduled to begin in the first quarter of 2027, with first gas delivery anticipated in the second quarter of 2028.
What happened
The Nigerian government has announced the commencement of a $100 million gas distribution pipeline initiative aimed at expanding energy access for manufacturing and commercial centres across the South-east region, according to Premium Times and BusinessDay reports. The investment agreement was finalized during a ceremony in Enugu.
Representing President Bola Tinubu, the Deputy Speaker of the House of Representatives, Benjamin Kalu, stated that the infrastructure would link natural gas resources directly to industrial clusters in Abia, Anambra, Ebonyi, Enugu, and Imo states. The South East Development Commission (SEDC), operating via its investment arm, is executing the project alongside GasSync and NNPC Gas Marketing Limited.
Mark Okoye, the chief executive of SEDC, noted that the commission has allocated $3 million to the venture following necessary evaluations. The project promoter, GasSync, represented by Callistus Mba, explained that the network originates in Ohaji, passes through Owerri and Aba towards Onitsha, and includes extensions to Enugu and Ebonyi. This layout is designed to decrease reliance on transporting compressed and liquefied natural gas by road.
What comes next
Construction works are slated to commence in early 2027, with initial gas deliveries expected by the second quarter of 2028. Regional governors have committed to fast-tracking environmental impact assessments and right-of-way permissions. SEDC is seeking to secure up to $30 million in regional investment participation to help finance the project alongside public funding.
Why it matters
Industrial expansion in Nigeria continues to face constraints related to reliable energy access. With the World Bank reporting that Nigeria's electricity use per person stood at 140.6 kWh in 2024, well below global averages, decentralized industrial gas networks are vital for supporting local manufacturing and agro-processing.
Expanding gas infrastructure directly to commercial hubs can reduce operational costs for manufacturers currently reliant on expensive road-transported fuel alternatives. For energy investors, the collaborative financing model demonstrated by SEDC and private partners offers a framework for deploying capital into regional infrastructure projects that address localized supply bottlenecks.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Gas is the flexible backbone of many grids and the designated transition fuel in many national plans, from LNG trade to domestic LPG and CNG. Supply security and pricing drive both power reliability and emissions.
21.9% of electricity in the world came from gas in 2024Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
