NLNG Seeks Stranded‑gas Commercialisation, Interconnected Infrastructure

The Nigeria Liquefied Natural Gas Limited (NLNG) has expressed concerns about projections which has indicated 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.

To reduce the impact of that scenario on the economy, the Company suggests for broader strategy to commercialize stranded gas resources, develop interconnected infrastructure and full implementation of incentives under the Petroleum Industry Act (PIA).

The General Manager, Commercial, NLNG, Mr. Timothy Fakrogha, gave the suggestion during a panel session at the Nigeria Oil and Gas (NOG) Energy Week in Abuja, where he said the forecast underscored the need to unlock Nigeria’s gas potential.

According to Fakrogha, “Nigeria possesses abundant gas resources, much of them remain in speculative reserves, there is 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 said 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.

He 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 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,” he said.

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 had steadily increased volumes over the years.

Fakrogha said 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 said that once adequate domestic infrastructure was in place, NLNG also planned to channel part of its export volumes into the Nigerian market before the end of the decade.

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 commended regulators for policies encouraging deep offshore gas development and efforts by the Nigerian Content Development and Monitoring Board (NCDMB) to shorten contracting timelines.

According to him, both measures will 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.

Reassuring NLNG’s commitment to the domestic market, he said that the company currently delivered 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.