Federal Govt Hinges 10bcf/d Gas Output Target On 20 Projects Amid $3.5bn Investment Commitments

The federal government has placed its near-term target of 10 billion cubic feet per day (bcf/d) of gas production on about 20 identified gas projects, as investment commitments tied to the sector reach about $3.5 billion.

The minister of state for Petroleum Resources (Gas), Ekperikpe Ekpo, said this at a media parley in Abuja. He said the number of projects in the pipeline has doubled since he assumed office in 2023.

“When I assumed office, under the Department of Gas, we were having about 10 gas projects,” he said. “But with the directive of Mr. President, as we speak today, we have about 20 gas projects that have been identified.”

Average production has risen from about 6.86bcf/d to approximately 7.5bcf/d. Reaching 10bcf/d would require about 2.5bcf/d of new output, more than three times the roughly 0.7bcf/d added since 2023. The government’s longer-term goal is 12bcf/d by 2030.

Ekpo also said that domestic gas supply has crossed 2bcf/d. The OB3 pipeline is 100 per cent complete, and pre-commissioning has been concluded in preparation for first gas, following completion of the River Niger crossing. The pipeline can carry 2bcf/d and is expected to unlock more than 500 MMscf/d of incremental domestic supply. The Ajaokuta-Kaduna-Kano (AKK) pipeline is about 95 per cent complete.

At Nigeria LNG, nameplate capacity utilisation has risen from about 59 per cent in 2023 to about 87 per cent year-to-date in 2026. The Train 7 expansion, targeted for completion in June 2027, will add about 8 million tonnes per annum to the existing 22 million, taking capacity to about 30 million tonnes.

Proven (2P) gas reserves have grown from about 208.83 trillion cubic feet in 2023 to 215.19 trillion cubic feet as at January 1, 2026.

Ekpo said the federal government is pushing for final investment decision (FID), the point at which a developer commits capital to build, on all 20 projects.

“We are working towards getting FID for all those projects so that they can come on stream,” he said.

He added that some projects already completed have not yet started production.

The minister also pointed to the gas master plan recently launched by NNPC Limited, which he said did not exist before. He described it as part of the effort to ramp up production.

“So there is hope and confidence that we will meet that target,” he said. “I believe we will meet it.”

On the financial commitments, Ekpo said four major gas projects have reached FID, together accounting for approximately $3.5 billion in committed investment. These include; Iseni Project, about $122 million; Ubeta Project, about $566 million; HI Project, $2 billion and Ima Project, $800 million.

He said a separate project, the Brass Methanol Project, also valued at about $3.5 billion, has advanced towards execution following resolution of its Gas Sales and Purchase Agreement. Taken together, the five projects account for about $7 billion.

Ekpo said the projects are evidence that responsible investment can create enduring domestic value, strengthen productive capacity and generate employment. The government’s broader target is about $30 billion in gas investment by 2030.

The federal government also said that public money is drawing in private capital. Through the Midstream and Downstream Gas Infrastructure Fund, N671 billion in public funds has attracted about ₦1.6 trillion in private investment. The fund covers 31 projects and 205 infrastructure assets that could deliver about 475 million standard cubic feet a day (MMscf/d) to the domestic market when fully operational.

On gas-to-power, the National Economic Council approved about N185 billion in validated legacy debt payments owed to upstream gas producers. Ekpo said some power plants had lacked gas because of the debts, and that supply has improved since the payment. He said the payment is about restoring commercial discipline, improving supply reliability and rebuilding investor confidence.

Domestic obligation

Ekpo said gas projects aimed at the export market must first meet their domestic supply obligations, which are set in law. He said the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) calculates the volumes each producer must supply to the local market before exporting.

“Not everything that is produced there will be exported,” he said. He added that he would not intervene when an operator sought relief from its obligation.

He said associated and non-associated gas production now stands at about 50-50, and that a presidential order has provided incentives for non-associated gas development.