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ANOH Gas Project Commence Gas Export to NLNG in Q4 2025 Despite OB3 Pipeline Delays

ANOH Gas Processing Company Limited (AGPC) has announced that its $850 million ANOH Gas Project is set to commence operations and begin gas exports to Nigeria LNG (NLNG) in Bonny Island by the fourth quarter of 2025. 

This milestone will be achieved through an alternative export route, despite ongoing delays to the completion of the OB3 pipeline.

Speaking at the 2025 Gas Investment Forum in Lagos, themed “Nigeria’s Decade of Gas: Strengthening Partnerships for Infrastructure Expansion and Market Growth,” AGPC Managing Director, Engr. Effiong Okon, reaffirmed the strategic importance of natural gas in Nigeria’s energy transition, calling it “a destination fuel and a key pillar of national prosperity.”

The ANOH Gas Project, located in Imo State, is a joint venture between NNPC Gas Infrastructure Company (NGIC) and SEPLAT Energy Plc, representing a model for public-private collaboration in Nigeria’s gas sector. The facility is designed for a processing capacity of 300 million standard cubic feet per day (MMscfd), with future scalability to double or even triple the volume.

 “The total investment in the ANOH Gas Project is approximately $850 million, equally funded by SEPLAT and NGIC,” said Okon. “Since taking Final Investment Decision (FID) in 2019, we’ve achieved over 17 million man-hours without a Lost Time Incident (LTI), which is a significant safety milestone in our complex operating environment.”

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Okon highlighted the transformative potential of natural gas across Nigeria’s economy—from powering industries and generating electricity to supporting fertilizer production and displacing more polluting fuels like diesel and biomass.

 “Gas emits 30–40% less greenhouse gases than oil, and Nigeria’s over 210 trillion cubic feet of proven reserves represent a massive opportunity for cleaner, more sustainable growth,” he said.

However, the AGPC MD emphasized the importance of economic viability, noting that unsustainably low gas pricing undermines investor confidence.

“You cannot invest $850 million in midstream infrastructure and expect to sell gas at $1 per MMBtu—it’s simply not viable,” he cautioned. “Revenue from gas processing supports not only midstream development but also upstream investments where the gas journey begins.”

Commending the Petroleum Industry Act (PIA) for creating an improved fiscal environment, Okon described the Act as a “game-changer” for Nigeria’s energy sector, noting its enhanced incentives and clearer regulatory structure.

In response to questions on boosting supply and expanding processing infrastructure—particularly in Nigeria’s Southeast—Okon outlined five priority actions:

1. Resolve Legacy Debts across the power and gas value chains;

2. Clear Outstanding Payments to Gas Producers to ensure upstream continuity;

3. Review Domestic Gas Pricing to ensure bankable projects;

4. Develop Regional Demand Centers linked to new pipeline infrastructure;

5. Boost Upstream Investment to ensure long-term gas supply.

 “The Southeast is fast emerging as a gas-based industrial hub, with projects like the Orashi Energy Free Trade Zone and pipeline interconnections across Assa, Obibo North, Ikot Abasi, and the Qua Iboe Terminal,” Okon added.

AGPC’s announcement reinforces its commitment to supporting Nigeria’s Decade of Gas agenda, deepening energy security, driving industrialization, and promoting cleaner energy alternatives.

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