WED AUG 26 2026-theGBJournal| Nigeria is processing less than half of the capacity available at its major gas facilities, underscoring the gap between the country’s vast gas resources and its ability to turn them into reliable power, industrial output and export earnings.
Nigeria’s gas-processing infrastructure operated at an average 49.21 per cent utilisation in July, according to the latest midstream and downstream statistics from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The figures, seen by the G&B Journal offer a striking picture of an industry with substantial installed capacity but persistent constraints in getting gas processed, transported and consumed.
The seven major facilities tracked by the regulator processed an average 7.966bn cubic feet of gas a day, against installed capacity of roughly 7.9bn cubic feet a day across the listed plants, with utilisation varying dramatically between facilities.
The disparity is particularly stark at the OB/OB AG Gas Plant, which operated at just 22.95 per cent of capacity, compared with the Soku Gas Plant, which was running at an exceptional 99.56 per cent.
The Gbaran Ubie Gas Plant recorded utilisation of 92.79 per cent, while NLNG’s Train 1-6 facilities operated at 78.82 per cent. Escravos and Utorogu recorded utilisation rates of 77.25 per cent and 70.58 per cent, respectively, while Obite operated at 51.32 per cent.
The data points to a central contradiction in Nigeria’s gas economy: the country has invested in substantial processing infrastructure, yet large portions of that capacity remain underused.
That shortfall comes at a time when the government is betting heavily on gas to support electricity generation, industrialisation and a broader transition away from expensive liquid fuels.
Gas supply weakens
Nigeria supplied an average 4.723bn cubic feet of gas per day in July, down from 5.116bn cubic feet per day in June.
Of the July volume, 2.695bn cubic feet per day went to Nigeria LNG, while the domestic market received 2.028bn cubic feet per day.
The domestic allocation was divided among key consuming sectors, with gas-to-power receiving 534m cubic feet per day, commercial users taking 552m cubic feet, and gas-based industries receiving 507m cubic feet per day.
The decline is significant because gas remains central to Nigeria’s electricity system. A shortage or disruption in gas supply can quickly translate into lower power generation, higher reliance on diesel and other liquid fuels, and increased costs for manufacturers.
The NMDPRA data also show that domestic gas supply has struggled to meet the country’s needs.
The NUPRC reported that domestic gas suppliers delivered an average of about 2.05bn cubic feet per day in the first half of 2026, equivalent to only about 65 per cent of the country’s Domestic Gas Delivery Obligation target.
The July figures therefore suggest that the problem is not simply one of reserves or production.
It is increasingly a question of infrastructure, commercial incentives and the ability to move gas to where it is needed.
Export machine versus domestic market
Nigeria’s gas industry continues to serve two powerful demands: exports and the domestic economy.
NLNG exported an average 114.753m cubic metres of LNG a day, equivalent to about 51,683 tonnes a day, while pipeline exports through the West African Gas Pipeline averaged 139m cubic feet per day.
That export orientation generates valuable foreign exchange and reinforces Nigeria’s position in international LNG markets.
But it also highlights the policy tension facing Abuja: every additional molecule directed towards exports must be weighed against the need for affordable and reliable gas for power stations, factories and businesses at home.
Nigeria’s challenge is therefore not simply to produce more gas. It must create enough commercially viable supply to serve both markets.
Condensates provide a bright spot
There was at least one positive signal in the July data.
Gas-processing plants produced 2.117m barrels of condensates during the month, although this was below the 2.228m barrels recorded in June, the strongest monthly output so far this year.
Condensates provide an additional revenue stream from gas processing and can be blended or exported as valuable hydrocarbon streams, strengthening the economics of gas projects.
But the broader numbers remain a reminder that infrastructure utilisation matters as much as infrastructure construction.
Pipelines become the critical link
That is where Nigeria’s pipeline programme becomes increasingly important.
The NMDPRA presentation shows the Ajaokuta-Kaduna-Kano (AKK) gas pipeline at 94.8 per cent completion, while key Nigerian Gas Infrastructure Company projects are also at advanced stages.
The OB3 River Niger Crossing is listed as 100 per cent complete and the ELPS Midline Compressor Project at 95.77 per cent.
The Odidi-Warri Expansion Project, however, stood at 75.47 per cent, while the Escravos-Odidi Pipeline was only 25.72 per cent complete.
These projects matter because Nigeria’s gas problem is increasingly a transportation problem. Gas stranded in producing regions cannot power a factory hundreds of kilometres away, regardless of how much processing capacity exists on paper.
The underutilisation of some plants alongside near-full utilisation at others reinforces the case for a more connected national gas network.
Bigger economic question
The July numbers expose a structural weakness in Nigeria’s gas ambitions.
The country has the reserves. It has processing plants. It has LNG infrastructure.
It is building pipelines. Yet the system is still unable to consistently convert that potential into sufficient domestic supply.
Independent reporting on the July NMDPRA data similarly found average gas-processing utilisation at 49.21 per cent, with Soku operating at almost full capacity and OB/OB operating at less than a quarter of its design capacity.
Overall, the July statistics show that Nigeria is still leaving a substantial part of its gas-processing capability idle.
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