NLNG calls for commercialisation of stranded gas, full pia incentives implementation

The Nigeria Liquefied Natural Gas Limited has called for urgent commercialisation of stranded gas resources, development of shared infrastructure, and full implementation of incentives under the Petroleum Industry Act to unlock Nigeria’s gas potential.

Timothy Fakrogha, General Manager, Commercial, NLNG, made the call on Thursday during a panel session at the Nigeria Oil and Gas Energy Week in Abuja.

—“Deficit by 2030 is an opportunity”—

Fakrogha warned that projections show Nigeria could face a gas supply deficit by 2030 despite holding enormous reserves.

“Nigeria possesses abundant gas resources, but much of them remain in speculative reserves,” he said.

“There is the 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.”

He stressed that the projected gap should be viewed as an opportunity rather than a constraint.

—Push for shared infrastructure—

Rather than individual operators building separate facilities, Fakrogha urged Nigeria to optimise gas hubs and encourage shared infrastructure to cut costs and speed up development.

He cited NLNG’s Gas Transmission System [GTS], which aggregates supplies from multiple upstream producers, as a model for future gas development across the country.

He also identified major projects like the Ajaokuta-Kaduna-Kano [AKK] Gas Pipeline as critical to deepening domestic gas penetration through smaller distribution networks connected to main pipelines.

—Call to leverage PIA incentives—

The NLNG executive urged investors to take advantage of incentives in the PIA and presidential fiscal measures designed for non-associated gas projects.

“The window of opportunity is there, but it will not remain open forever. Investors need to move quickly,” he said.

He commended regulators for policies encouraging deep offshore gas development and the NCDMB for efforts to shorten contracting timelines, saying both will accelerate new gas projects.

—Boosting domestic lpg supply—

Highlighting NLNG’s domestic market role, Fakrogha said the company began supplying Liquefied Petroleum Gas [LPG] locally in 2007 and has steadily increased volumes.

Domestic LPG supply reached about 520,000 tonnes by the end of 2025, following a shareholder decision to prioritise local availability.

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. The company currently delivers 100 percent of its designated domestic LPG volumes.

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“On domestic gas pricing, it is important that regulated prices provide sufficient returns to producers to sustain investments while ensuring affordable supply to end users,” he said.

“Nigeria is a gas nation. We remain committed to ensuring gas availability wherever possible while supporting national development.”