10/07/2026
NLNG urges commercialisation of stranded gas, PIA incentives
The Nigeria Liquefied Natural Gas Limited has called for the commercialisation of stranded gas resources, the development of interconnected infrastructure, and the full implementation of incentives under the Petroleum Industry Act.
Timothy Fakrogha, NLNG’s general manager (Commercial), who spoke during a session at the Nigeria Oil and Gas Energy Week in Abuja, underscored the need to unlock Nigeria’s gas potential.
According to him, projections indicate that by 2030, Nigeria could face a gas supply deficit despite its enormous reserves, and he stressed that the gap should be viewed as an opportunity rather than a constraint.
Mr Fakrogha said that rather than individual operators building separate gas infrastructure, Nigeria should optimise its gas hubs and encourage the sharing of infrastructure to reduce costs and accelerate development. He cited the company’s Gas Transmission System, 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.
Highlighting NLNG’s contribution to Nigeria’s domestic energy market, he said the company deliberately began supplying liquefied petroleum gas locally in 2007 and had steadily increased volumes over the years.
Mr 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 Gas Pipeline, as critical to deepening domestic gas pe*******on by developing smaller distribution networks connected to the main pipelines.
He commended regulators for policies that encourage deep offshore gas development and for the Nigerian Content Development and Monitoring Board’s efforts to shorten contracting timelines.
According to him, both measures will accelerate the development of 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 an affordable supply to end users.
Reaffirming NLNG’s commitment to the domestic market, he said that the company currently 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 stated.
