NNPC eyes 1.8cf/d gas output increase this year as demand climbs

NIGERIA’s push to become a major gas-driven economy is set to gather momentum in 2026, as the Nigerian National Petroleum Company Limited (NNPC Ltd) plans to inject an additional 1.8 billion cubic feet of gas per day (cf/d) into the domestic market. The expansion forms a central pillar of the company’s Gas Master Plan (GMP) 2026, which outlines a long-term strategy for scaling production and meeting rising energy demand across the country.

The plan was unveiled in Abuja weekend during a high-level engagement with members of the Nigeria Guild of Editors, where NNPC executives presented detailed projections and sector-wide implications of the new roadmap. The company said the fresh supply would be driven largely by two of its upstream subsidiaries: NNPC Upstream Investment Management Services (NUIMS) and Nigerian Exploration and Production Limited (NEPL).

Under the production schedule shared at the event, NUIMS is expected to contribute an additional 1.496 billion cubic feet per day, while NEPL will add about 223.6 million standard cubic feet per day. Together, the volumes are designed to close part of Nigeria’s existing supply gap and lay the foundation for long-term gas market stability.

NNPC explained that the increase was not just about volume, but about supporting a broader national development agenda. The Gas Master Plan shows that Nigeria is working toward supplying 10bcf/d by 2027, before scaling further to 12bcf/d by 2030. These targets, officials said, are aligned with the Nigerian government’s goal of using gas as a bridge fuel for economic diversification and industrial growth.

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Demand for natural gas has been climbing rapidly, driven by multiple sectors. Power plants continue to rely heavily on gas-fired generation to stabilise the national grid, while industrial parks, manufacturing clusters and petrochemical facilities are expanding their capacity. At the same time, the transport sector is seeing an adoption of compressed natural gas (CNG), and Nigeria’s liquefied natural gas (LNG) export chain remains a key source of foreign exchange.

According to NNPC, these growing needs have made the proposed expansion unavoidable. Company officials said the master plan provides a clear framework for sequencing infrastructure investments, prioritising projects, and coordinating efforts among public and private stakeholders.

NNPC Group Managing Director, Engr Bayo Ojulari, said the strategy reflects a direct mandate from the Presidency to unlock the country’s vast gas resources and make the sector more attractive to investors. He noted that the plan goes beyond production targets by creating a pathway for large-scale capital inflows.

“The objective is to grow national gas output to 10bcf/d by 2027 and 12bcf/d by 2030, while stimulating more than $60 billion in new investments across the oil and gas value chain by the end of the decade,” Mr Ojulari said.

He identified several conditions that must be met for the vision to succeed. Among them are strong global and domestic demand, transparent governance structures, and close alignment between government agencies, operators and financiers. He added that easier access to funding would depend on the development of commercially viable, bankable gas projects.

Mr Ojulari also highlighted the need for attractive fiscal and commercial terms, especially for deepwater gas ventures that require large upfront capital. In addition, he said reforms in the power sector were critical to strengthening the gas-to-power value chain and ensuring that producers are paid on time for supplied volumes.

To improve efficiency, the Gas Master Plan adopts a hub-based development model. Rather than treating each gas asset as a standalone project, NNPC is grouping fields and infrastructure into regional clusters that share processing facilities, pipelines and markets. This approach, the company said, will reduce costs, accelerate development timelines and improve supply reliability.

A hub-ranking exercise has already been completed, with 23 high-potential hubs identified across the country. These hubs are expected to serve as growth engines for Nigeria’s gas industry in the short to medium term, supporting both domestic consumption and export opportunities.

With the new roadmap, NNPC believes Nigeria is better positioned to harness its gas resources as a catalyst for economic transformation, energy security and industrial competitiveness in the years ahead.