Federal Government Announces First Gas Flow from AKK Pipeline by July 2026

The Nigerian federal government announced on Thursday that the inaugural flow of gas from the Ajaokuta-Gwagwalada segment of the $2.8 billion Ajaokuta–Kaduna–Kano (AKK) Pipeline Project is slated to begin in July 2026. This marks a significant milestone in Nigeria's efforts toward gas-to-power initiatives and industrialization.

At a stakeholder workshop titled "Emerging Investment Opportunities in Mini- LNG/LCNG Stations, Gwagwalada, Abuja," organized by Portland Gas in Abuja, Olalekan Ogunleye, the Executive Vice President for Gas, Power, and New Energy at the Nigerian National Petroleum Company Limited (NNPC Ltd), stated that this initiative is expected to bolster the country’s gas commercialization goals, generate employment opportunities, and provide viable returns under competitive market pricing.

Ogunleye highlighted the societal changes under the theme "Powering the Future: Leveraging CNG Infrastructure to Drive Nigeria’s Energy Transition and Sustainable Growth." He emphasized Nigeria’s shift towards becoming a “gas- first nation” from its historical oil-driven economy, noting the strategic importance of this transition.

The ongoing transformation is driven by the "Decade of Gas" initiative and the NNPC Gas Master Plan 2026, which sets ambitious production targets of 10 billion cubic feet (Bcf) by 2027 and 12 Bcf by 2030.

Ogunleye, who was represented by Suleiman Kachalla, the Business Development Manager, reaffirmed Nigeria’s substantial reserves of 210.54 trillion cubic feet (TCF) of proven gas, making it one of the largest reserves in Africa. He noted that domestic gas supply has already exceeded 2.0 Bcf per day, positioning the country for rapid industrial growth.

He explained that the AKK pipeline is a crucial infrastructure venture connecting gas-rich southern regions to northern and central Nigeria. It aims to stimulate industrial demand in these areas, promote competitive energy generation, foster manufacturing development, and enhance the adoption of auto-CNG and mini-LNG.

Ogunleye pointed out that Gwagwalada's strategic location along the AKK corridor makes it suitable for Portland Gas’ Mini-LNG/L-CNG facility. The area serves as a vital transport hub connecting Kogi state with key northern centers, creating considerable demand from various sectors including transport, manufacturing, agriculture, and real estate, all of which are seeking reliable and cost-effective energy solutions.

He noted, "At the heart of midstream transformation is the 614-km Ajaokuta- Kaduna-Kano Gas Pipeline (AKK). The Ajaokuta-Gwagwalada segment is projected to be operational with the first gas flowing by July 2026, linking northern industries directly to Nigeria's gas resources while addressing national energy shortages."

“The countdown to July 2026 has begun,” he reiterated. “When the first valve opens in Gwagwalada, it will symbolize more than just gas flow; it will represent a surge in productivity, industrial growth, and economic revitalization.”

Under the terms of this project, NNPC will deliver piped natural gas to Portland Gas's LNG/CNG facilities. This setup is expected to act as a central hub, supplying mobile refueling stations and retail outlets to establish a comprehensive virtual pipeline network.

Ogunleye underscored that the facility is essential in enhancing Nigeria's gas commercialization strategies and aims to produce stable employment and attractive returns in a market-driven manner.

Highlighting the role of natural gas in Nigeria's energy transition, he stated that substituting diesel with LNG and petrol with CNG can decrease transportation emissions by approximately 25%, enhancing urban air quality in the process.

He mentioned that the federal government’s aim of reaching Zero Routine Flaring by 2027 would further improve gas supply by utilizing previously wasted gas for domestic purposes.

Ogunleye acknowledged robust market indicators that endorse gas investments, such as increasing liquid fuel prices, expanding fleet conversion programs, state-led CNG initiatives, and growing industrial needs for reliable power. He noted many fleet operators are currently saving between 40% to 60% in fuel costs due to CNG implementation, greatly enhancing their competitiveness.

With a national target of $60 billion in oil and gas investments by 2030, Ogunleye indicated that the government and NNPC are focusing on establishing reliable infrastructure based on the AKK project, ensuring regulatory clarity under the Petroleum Industry Act, developing scalable mini-LNG systems, and expanding services throughout northern markets.

He asserted that investors are becoming increasingly confident, no longer facing pioneer risks but benefiting from clear market trends and governmental support.

Reiterating the impending milestone, Ogunleye stated, "When the first valve opens in Gwagwalada, it will ignite industrial growth and economic renewal." He reassured Portland Gas of NNPC’s commitment to dependable gas supply along the AKK route, encouraging investors to align their resources with the established infrastructure and supportive policy environment.

Ogunleye noted that the CNG sector is rapidly evolving, citing over $200 million in private sector investment commitments and more than 300 conversion centers across Nigeria, with a target of converting 1 million vehicles to CNG by 2027. Each successful conversion contributes to reducing fuel imports, saving foreign exchange, lowering transportation costs, and stabilizing the economy.

In his comments, Ismaeel Ahmed, Chairman of the Presidential Compressed Natural Gas Initiative (PCNGI), emphasized that building a competitive gas economy necessitates not only strong policy but also significant infrastructure, financing, collaboration, and effective execution.

Representing Ahmed, Tosin Coker remarked that the initiative aimed to harness Nigeria's extensive gas reserves for genuine economic progress, energy security, and widespread opportunity. Furthermore, he stressed the need for policies that manifest in higher visibility with infrastructure expansion, vehicle conversions, job creation, and cost reductions.

Chairman of Portland Gas, Folajimi Mohammed, reiterated the company’s commitment to providing clean, reliable, and sustainable gas solutions. He affirmed that Portland Gas is prepared to invest substantially and successfully enable the transformation of the gas sector in Nigeria in alignment with the vision of President Bola Tinubu, advocating for increased gas utilization and expansion to foster job creation, industrial growth, and enhanced energy security.