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OB3 Completion, Pricing Reforms To Ignite Nigeria’s Gas Revolution, Minister, Operators Agree

Nse Anthony-Uko by Nse Anthony-Uko
5 months ago
in Business
Ekperikpe Ekpo

Ekperikpe Ekpo

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Top officials and industry leaders have reached consensus that Nigeria’s path to becoming a global gas hub hinges on completing the Obiafu-Obrikom-Oben (OB3) and other gas pipelines, enacting market-driven pricing reforms, and resolving legacy gas-to-power debts, all of which are non-negotiable for transforming Nigeria into a globally competitive gas hub.

The shareholders who spoke at the National Gas Day session of the 9th Nigeria International Energy Summit (NIES 2026), in Abuja on Thursday,

Minister of State for Petroleum Resources (Gas), Dr Ekperikpe Ekpo, setting the tone in his keynote address, framed gas as “the cornerstone of Nigeria’s energy transition” and a “bridge fuel.

With Nigeria’s 210.54 Tcf reserves—the largest in Africa and ninth globally—Ekpo stressed measuring success by “megawatts delivered to homes, hospitals, schools, and industries; jobs created and foreign exchange earned.”

He hailed achievements such as LPG domestication to stabilise household prices, resolution of the “decades-long gas-to-power debt” via Presidential approval and NEC ratification, a Nigerian’s election as GECF Secretary General, and nationwide free LPG cylinder rollout across six geopolitical zones to curb deforestation and boost clean cooking.

Echoing Ekpo, panellists from NNPC, Decade of Gas (DOG), Oilserv, Renaissance, and Seplat rallied behind the NNPC Gas Master Plan 2026 as an “actionable roadmap” to hit 10 BCF/d by 2027 and 12 BCF/d by 2030, ditching the fragmented 2008 approach.

Focal, NNPC Gas Master Plan Implementation Assistance Team, Ekpei Ukam, outlined the shift to three integrated gas hubs to optimise costs and balance domestic-export supply.

“This master plan provides an actionable roadmap that will guide the development of gas… moving away from a fragmented project-by-project approach,” Ukam said, crediting PIA clarity, partnerships, and an implementation framework with annual reviews.

The OB3 pipeline dominated as the immediate priority, with the DOG representative calling its river crossing “critical” to unleash a 50 per cent domestic gas surge, building on western segments already flowing over 300 MMscf/d.

 

“I’m confident that by the end of this year, that line will be completed. It allows Nigeria’s domestic gas consumption to jump by about 50 per cent,” the coordinator, Decade of Gas,  Ed Ubong, urged, tying it to 16 priority pipelines under NNPC and aligning with Ekpo’s push for a National Gas Infrastructure Command Centre approved by President Tinubu.

 

Pricing reforms emerged as the economic unlock, with Ubong detailing “price discovery discussions” for NMDPRA’s April 1 announcement to avoid shocks, alongside royalty offsets for upstream debts. “The president had approved for upstream producers to be able to take their debts from royalty payments. It really doesn’t make sense for a gas producer to continue to give government royalties when the government is owing them,” Ubong emphasised, mirroring Ekpo’s celebration of debt resolution to “restore confidence” and spur power investments.

 

Ekpo linked these to industrialisation, spotlighting gas-based hubs like Brass, LPG/CNG adoption, and modular commercialisation. “Gas is the lifeblood of industry—supporting agriculture, manufacturing, petrochemicals, and transportation,” he said, while  the vice president of Projects & Engineering at Renaissance Africa Energy Company, Abimbola Tijani  said the company is committed to 50 per cent of 2026 gas output, hailing the 93-page GMP as a “catalyst” with a data centre to de-risk projects.

 

Seplat Energy’s chief executive officer, Roger Brown, said the company boasts of 2.8 BCF/d capacity across hubs:

 

“No competitors in Nigeria at all. It’s Nigeria competing against the world.”

 

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The consensus fused policy wins with execution: PIA-driven cost-reflective pricing, simplified licensing, and local content to shorten timelines. “Nigeria is not just a market of promise—it is a platform of reform, resilience, and sustainable returns,” Ekpo declared.

 

Ukam affirmed partnerships as core: “2026 will be our test case to track the work program.”

 

Ubong tied it to LPG targets of 5M tons and flaring reductions, while flagged security for pipelines amid AKK corridor industries.

 

As gas powers over 70 per cent of Nigeria’s grid, speakers projected optimised exports, domestic transformation, and regional stability.

 

Ekpo closed: “Let us harness gas as an instrument of peace, a driver of industrial transformation, and a pillar of our shared future.”

 

With OB3 imminent and pricing aligned, the summit signalled Nigeria’s pivot from niche player to gas powerhouse.

 

 

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Nse Anthony-Uko

Nse Anthony-Uko

Nse Anthony-Uko is a business and financial journalist with over two decades of experience covering Nigeria's financial system, economy, energy sector, corporate landscape, and global economic developments. Her expertise blends frontline journalism with editorial leadership and a strong grasp of financial market dynamics. She has earned multiple professional recognitions and was selected for the International Visitors Leadership Programme (IVLP) in the United States.

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