Nigeria Targets 4.4 Bcf/D Gas Capacity With Revised Pipeline Code
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has introduced a revised gas transportation code to improve pipeline access, reduce avoidable losses and facilitate cross-border gas trade across Africa.
The Chief Executive of the Authority, Rabiu Umar, disclosed this at the 2026 OTL Africa Downstream Energy Week in Lagos, saying Revision 2 of the Nigerian Gas Transportation Network Code would establish clearer rules for gas shippers and transporters using the country’s pipeline network.
Umar said the revision builds on improvements recorded since the introduction of the first version of the code, including a 30 per cent reduction in gas imbalance on the Western Network.
The network code provides guidelines for injecting gas into shared pipelines, measuring volumes and nominating quantities for transportation. He explained that standardised procedures were necessary because multiple producers use the same pipeline infrastructure, making clear rules essential for transparency and the prevention of disputes.
He said the revised code would become increasingly important as Nigeria expands its gas transportation infrastructure, including the Ajaokuta-Kaduna-Kano pipeline.
According to him, the code would also address technical and commercial challenges that could result in losses during gas transportation, particularly issues relating to the shrinkage factor, which accounts for gas lost or consumed during transportation and processing.
Umar said the revised code would also provide a common framework for cross-border gas transportation, supporting Nigeria’s ambitions to expand regional energy trade.
Nigeria currently exports gas to neighbouring countries through the West African Gas Pipeline, while proposed projects include the Trans-Saharan Gas Pipeline to Algeria and the Trans-African pipeline to Morocco.
He said differences in operational rules among countries could complicate cross-border gas transportation, making harmonised standards necessary for efficient gas flows.
The NMDPRA chief linked the revised code to Nigeria’s broader efforts to increase domestic gas utilisation, attract investment and expand energy access.
He disclosed that approximately three-fifths of the gas processed in September was consumed by the midstream and downstream sectors, including electricity generation, manufacturing and other industrial activities, while some volumes were exported to neighbouring countries through the West African Gas Pipeline.
Umar also identified a supply gap in the cooking gas market, noting that demand currently exceeds available supply. He said the shortfall presented investment opportunities for businesses willing to expand domestic production and infrastructure.
On transportation capacity, he said the completion of major pipeline projects would increase Nigeria’s gas transmission capacity from 2.2 billion cubic feet per day to 4.4 billion cubic feet per day, improving the movement of gas from the southern part of the country to demand centres in the North.
The projects include the OB3 pipeline and the Ajaokuta-Kaduna-Kano pipeline, which Umar said was more than 80 per cent complete.
He said the additional capacity would improve gas supply to power plants, industries and other consumers, stimulating economic activity and creating investment opportunities across the gas value chain.
However, Umar stressed that unlocking Nigeria’s gas potential would require additional investment in processing facilities, pipelines, fertiliser production, liquefied petroleum gas and flare gas commercialisation.
He estimated that the oil and gas sector would require between $30bn and $50bn in fresh investment by 2030 to develop these opportunities.
The NMDPRA chief urged gas shippers, transporters and investors to take advantage of the revised network code and expanding pipeline infrastructure to increase participation in the domestic gas market and regional trade.
