The Federal Government of Nigeria has signed a $100 million investment and development agreement for a 400-kilometer gas pipeline project designed to connect gas resources to industrial and commercial centres across the five southeastern states.
The agreement was signed in Enugu on October 27, 2026, with the project expected to address energy supply challenges affecting manufacturing and industrial development in the region.
The pipeline will originate from the Assa North-Ohaji South (ANOH) gas processing plant in Imo State and extend to industrial centres in Abia, Anambra, Enugu and Ebonyi.
Project Partners and Funding
GasSync Limited is developing the project in partnership with NNPC Gas Marketing Limited, with the South East Development Commission (SEDC) participating as a public investor.
The initial phase requires approximately $100 million. The SEDC has committed $3 million in seed funding and plans to mobilise up to $30 million in regional investment, with the remaining funds expected from private investors and state governments.
Construction is targeted to begin in the first quarter of 2027, while the first gas delivery is projected for the second quarter of 2028.
Industrial Development and Energy Demand
The project is intended to provide gas supplies to manufacturers, power generators and agro-processing businesses across the Southeast.
President Bola Tinubu, represented by Deputy Speaker Benjamin Kalu, emphasised the need to reduce manufacturers’ dependence on expensive generators and expand industrial production.
The project promoters have identified approximately 150 prospective customers across manufacturing, power generation and agro-processing. Their projected gas demand stands at 254 million standard cubic feet per day.
The pipeline is expected to support manufacturing activities in Aba, industrial and commercial operations in Nnewi and Onitsha, and agro-processing development in Ebonyi State.
Construction Plans and Regional Support
Southeastern governors have pledged to accelerate right-of-way approvals and environmental impact assessments to minimise administrative delays.
Enugu State Governor Peter Mbah described the agreement as the formal commencement of the investment process, highlighting its potential to create local industrial opportunities and reduce youth migration from the region.
To accelerate construction, GasSync Limited plans to commence work simultaneously at Ohaji in Imo State and Onitsha in Anambra State rather than proceeding sequentially from Imo.
The project is expected to strengthen gas distribution infrastructure across the Southeast and support the region’s manufacturing, commercial and agro-processing sectors.
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