The federal government Thursday declared that the first gas from Ajaokuta-Gwagwalada segment of the $2.8 billion Ajaokuta–Kaduna–Kano (AKK) Pipeline Project will flow by July 2026, marking a structural turning point in Nigeria’s gas-to-power and industrialisation agenda.
Speaking at a stakeholders’ workshop on “Emerging Investment Opportunities in Mini-LNG/LCNG Stations, Gwagwalada, Abuja,” hosted by Portland Gas in Abuja, Executive Vice President, Gas, Power and New Energy of the Nigerian National Petroleum Company Limited (NNPC Ltd), Olalekan Ogunleye, said the facility would advance Nigeria’s gas commercialisation objectives, generate employment, and offer bankable returns under market-reflective pricing.
In his keynote address, titled, “Powering the Future: Leveraging CNG Infrastructure to Drive Nigeria’s Energy Transition and Sustainable Growth,” Ogunleye said Nigeria had decisively shifted from being an oil-dominant producer with associated gas to a “gas-first nation” strategically, commercially and operationally.
He said the transition was being driven under the “Decade of Gas” agenda and NNPC Gas Master Plan 2026, with measurable production targets of 10 billion cubic feet (Bcf) per day by 2027 and 12 Bcf per day by 2030.
Represented at the event by Manager, Business Development, Suleiman Kachalla, Ogunleye reiterated that Nigeria currently held 210.54 trillion cubic feet (TCF) of proven gas reserves, among the largest on the continent, while domestic supply had already surpassed 2.0 Bcf per day, positioning the country for accelerated industrial expansion.
He said the AKK pipeline, a flagship infrastructure project designed to connect gas-rich southern basins to demand centres in central and northern Nigeria, was expected to unlock industrial demand across the northern corridor, enable competitive power generation, stimulate manufacturing growth, and deepen auto-CNG and mini-LNG penetration.
He explained that Gwagwalada was strategic for Portland Gas’ Mini-LNG/L-CNG facility because of its positioning along the AKK Abuja take-off node and its role as a transport and logistics intersection linking Kogi and key northern hubs.
According to Ogunleye, the location presents strong demand fundamentals from transport and haulage fleets, small and medium-scale manufacturers, agro-processing clusters and real estate developments seeking stable and cost-efficient energy alternatives.
He stated, “At the heart of midstream transformation is the 614-km Ajaokuta-Kaduna-Kano Gas Pipeline (AKK). The Ajaokuta-Gwagwalada segment is projected to be commissioned, with first gas flowing by July 2026, linking northern industrial zones to Nigeria’s gas fields, and structurally addressing National energy deficits.
“The countdown to July 2026 has begun. When the first valve opens in Gwagwalada, it will not simply release gas, it will release productivity, industrial growth, and economic renewal.”
Under the arrangement, NNPC said it will supply piped natural gas to the Portland Gas LNG/CNG production plant, which was expected to operate as a “mother station,” feeding mobile refuelling units and retail outlets to create what he described as a robust virtual pipeline network.
It said the facility would advance Nigeria’s gas commercialisation objectives, generate employment and offer bankable returns under market-reflective pricing.
The NNPC executive emphasised that natural gas would anchor Nigeria’s energy transition pathway, stating that replacing diesel with LNG and petrol with CNG can reduce transport emissions by about 25 per cent while improving urban air quality.
According to Ogunleye, the federal government’s Zero Routine Flaring target for 2027 would further strengthen supply by capturing previously wasted gas and redirecting it into productive domestic use.
Ogunleye cited strong market signals supporting gas investments, including rising liquid fuel costs, expanding fleet conversion programmes, state-level CNG initiatives and growing industrial demand for captive power, stressing that fleet operators are already realising fuel cost savings of between 40 and 60 per cent through CNG adoption, significantly reshaping logistics economics and improving competitiveness.
With a national oil and gas investment target of $60 billion by 2030, he said the government and NNPC were prioritising infrastructure certainty anchored on the AKK backbone, regulatory stability under the Petroleum Industry Act, scalable mini-LNG deployment models and market depth across northern corridors.
Ogunleye stressed that investors were no longer assuming pioneer risk but leveraging structured national momentum, visible demand growth and supportive policy alignment.
“The countdown to July 2026 has begun,” he said. “When the first valve opens in Gwagwalada, it will not simply release gas; it will release productivity, industrial growth and economic renewal,” he added.
He assured Portland Gas of NNPC’s readiness to supply gas reliably along the AKK corridor and urged investors to align capital with the infrastructure and policy groundwork already laid.
Ogunleye stated, “The CNG sector has rapidly scaled: Over $200 million in private investment commitments; 300+ conversion centres nationwide and a target of 1 million CNG vehicle conversions by 2027. Each conversion reduces fuel imports, preserves foreign exchange, lowers transport costs, and strengthens macroeconomic stability.”
In his remarks, Chairman of Presidential Compressed Natural Gas Initiative (PCNGI), Ismaeel Ahmed, stated that a competitive gas economy required more than policy pronouncements, but also infrastructure.
According to Ahmed, it also requires capital, partnership and most importantly, execution.
Represented by Tosin Coker, Ahmed said, “When the presidential initiative on compressed natural gas was established, the mandate was clear. It was to translate Nigeria’s abundant gas reserves into real economic relief, energy security, and nationwide opportunity. Policy must move beyond documents and become visible infrastructure, stations built, vehicles converted, jobs created, and costs reduced.
“Today we are seeing that transformation unfold. Across the country, CNG conversion centres are expanding. The fuelling infrastructure is scaling.”
In his remarks, Managing Director and Chief Executive of Portland Gas, Folajimi Mohammed, stated that the commitment of the company remains clear: to make clean, reliable and sustainable gas solutions a reality.
Mohammed stated, “With years of our experience in the gas infrastructure supply, I believe we have consistently delivered. We have done our projects to the highest standard of safety, efficiency and innovation. This record gives us the confidence to say that the Nigerian gas sector is ripe for investments.
“And Portland Gas is ready to make these leading investments and make them succeed. I would also like to say that we fully endorse and align with President Bola Tinubu’s vision for gas utilisation and expansion. This vision is transforming Nigeria into a gas-powered economy.
“It’s unlocking jobs, it’s driving industrial growth and it’s improving energy security. We are honoured to play our part by building a strong bridge between policy aspiration and practical execution on the ground.”
Emmanuel Addeh
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