Nigeria LNG Limited (NLNG) has identified a significant future gas supply gap, saying the shortfall presents a major investment opportunity to unlock the country’s vast gas resources and strengthen both domestic supply and exports.
This was made known during a panel session titled “Realising Gas Economies: Building Secure, Integrated and Globally Competitive Hubs” at the ongoing Nigeria Oil and Gas (NOG) Energy Week in Abuja on Wednesday.
The General Manager, Commercial, NLNG, Engr. Timothy Fakrogha said Nigeria must urgently commercialise stranded gas resources, develop interconnected infrastructure and fully implement incentives provided under the Petroleum Industry Act (PIA).
According to him, projections indicate that by 2030, Nigeria could face a gas supply deficit despite its enormous reserves, stressing that the gap should be viewed as an opportunity rather than a constraint.
He noted that while Nigeria possesses abundant gas resources, much of them remain in speculative reserves, underscoring the need to convert them into bankable proven reserves capable of attracting investments.
“There are real opportunities in the market. The challenge is how to commercialise these resources and de-risk gas development so investors can confidently commit capital.”
Fakrogha argued that rather than individual operators building separate gas infrastructure, Nigeria should optimise its gas hubs and encourage shared infrastructure to reduce costs and accelerate development.
The NLNG executive cited the company’s Gas Transmission System (GTS), which aggregates supplies from multiple upstream producers, as a model for future gas development across the country.
He also urged investors to take advantage of incentives contained in the Petroleum Industry Act (PIA) and the presidential fiscal measures designed to encourage investment in non-associated gas projects.
“The window of opportunity is there, but it will not remain open forever. Investors need to move quickly.”
Fakrogha dismissed suggestions that export gas projects compete with domestic gas supply, insisting that both markets complement each other.
According to him, increased gas production for exports ultimately supports domestic gas development through foreign exchange earnings, infrastructure investments and expanded production capacity.
Highlighting NLNG’s contribution to Nigeria’s domestic energy market, he said the company deliberately began supplying Liquefied Petroleum Gas (LPG) locally in 2007 and has steadily increased volumes over the years.
He disclosed that domestic LPG supply had grown to about 520,000 tonnes by the end of 2025 following deliberate policy decisions by the company’s shareholders to prioritise local availability.
He added that once adequate domestic infrastructure was in place, NLNG also plans to channel part of its export volumes into the Nigerian market before the end of the decade.
Fakrogha said Nigeria’s Gas Master Plan targets production of five million tonnes of LPG by 2030, noting that significant supply gaps still exist.
He welcomed the emergence of additional LNG projects across the country, saying new investments would expand both export capacity and domestic gas utilisation.
The NLNG executive also identified major gas infrastructure projects, including the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline, as critical to deepening domestic gas penetration through the development of smaller distribution networks connected to the main pipelines.
He further commended regulators for policies encouraging deep offshore gas development and efforts by the Nigerian Content Development and Monitoring Board (NCDMB) to shorten contracting timelines, saying both measures would accelerate new gas projects.
On domestic gas pricing, Fakrogha said it was important that regulated prices provide sufficient returns to producers to sustain investments while ensuring affordable supply to end users.
Reaffirming NLNG’s commitment to the domestic market, he said the company currently delivers all of its designated LPG volumes within Nigeria.
“Nigeria is a gas nation. We remain committed to ensuring gas availability wherever possible while supporting national development and maintaining 100 per cent delivery of our domestic LPG obligations,” he added.
