NLNG pushes for commercialisation of stranded gas, calls for fu....

Nigeria Liquefied Natural Gas Limited (NLNG) has urged the Federal Government and industry stakeholders to prioritise the commercialisation of stranded gas resources, development of interconnected infrastructure, and full implementation of incentives under the Petroleum Industry Act (PIA) to unlock Nigeria’s vast gas potential.

Speaking at a panel session during the Nigeria Oil and Gas (NOG) Energy Week in Abuja, Timothy Fakrogha, NLNG’s General Manager, Commercial, warned that projections indicate Nigeria could face a gas supply deficit by 2030 despite its enormous reserves.

He stressed that the looming gap should be seen as an opportunity to attract investment rather than a constraint.

“Nigeria possesses abundant gas resources; much of them remain in speculative reserves. There is a need to convert them into bankable proven reserves capable of attracting investments. The challenge is how to commercialise these resources and de-risk gas development so investors can confidently commit capital,” Fakrogha said.

He advocated for shared gas infrastructure rather than fragmented projects by individual operators, citing NLNG’s Gas Transmission System (GTS), which aggregates supplies from multiple upstream producers, as a model for future development.

Fakrogha also called on investors to leverage incentives contained in the PIA and recent presidential fiscal measures designed to encourage investment in non-associated gas projects, warning that the window of opportunity “will not remain open forever.”

Highlighting NLNG’s role in Nigeria’s domestic energy market, he noted that the company began supplying Liquefied Petroleum Gas (LPG) locally in 2007 and has steadily increased volumes, reaching about 520,000 tonnes by the end of 2025.

He added that once adequate domestic infrastructure is in place, NLNG plans to channel part of its export volumes into the Nigerian market before the end of the decade.

Fakrogha welcomed the emergence of additional LNG projects across the country, saying new investments would expand both export capacity and domestic gas utilisation.

He identified major infrastructure projects such as the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline as critical to deepening domestic penetration through smaller distribution networks connected to the main pipelines.

He commended regulators for policies encouraging deep offshore gas development and praised the Nigerian Content Development and Monitoring Board (NCDMB) for efforts to shorten contracting timelines, noting that both measures would accelerate new projects.

On pricing, he stressed the importance of regulated domestic gas prices that provide sufficient returns to producers while ensuring affordability for end users.

Reaffirming NLNG’s commitment to the domestic market, Fakrogha said the company 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.