NNPC boosts CNG gas supply as petrol price hikes fuel push for cheaper transport Gas Master Plan delivers 791m cubic feet of additional supply; government targets 12 billion cubic feet daily by 2030

The Nigerian National Petroleum Company Limited (NNPC) has stepped up efforts to guarantee gas supply to operators in the Compressed Natural Gas (CNG) value chain, as the Federal Government intensifies its drive to reduce the impact of rising petrol prices on households, transport operators and businesses.

The move is aimed at strengthening domestic gas utilisation and expanding access to CNG as a potentially cheaper alternative fuel for vehicles, particularly commercial buses, trucks and tricycles.

NNPC’s Executive Vice President for Gas, Power and New Energy, Olalekan Ogunleye, disclosed this on Monday on the sidelines of the 2026 Gas Technology Exhibition and Conference in Bangkok, Thailand.

Ogunleye said the company was working with upstream producers and other stakeholders to increase domestic gas supply, with particular attention to investors in the CNG sector.

He said the government and NNPC leadership were taking steps to ensure that businesses investing in CNG infrastructure could obtain the gas required to operate.

“The job is on. But more importantly, the government and the leadership of NNPC have taken adequate steps to ensure that anyone today that invests in the CNG value chain gets the gas they require,” he said.

According to him, Nigeria’s Gas Master Plan, launched on January 30, 2026, had delivered about 791 million standard cubic feet of additional gas supply by the end of August.

The volume represents about 17 per cent of the government’s target of adding 4.6 billion standard cubic feet of gas between the end of 2025 and 2030.

Ogunleye said the gas requirements of the CNG sector were manageable, adding that upstream producers were cooperating with efforts to guarantee supply.

He said NNPC was also enforcing domestic gas delivery obligations to ensure that investors in CNG stations, mini-liquefied natural gas plants and other gas-based businesses had access to sufficient feedstock.

The NNPC executive said expanding CNG infrastructure could deliver benefits beyond the energy sector, particularly by reducing transportation costs for agricultural produce and other goods.

Lower logistics costs, he explained, could help ease pressure on food prices and business operating expenses, which have been affected by rising petrol and diesel prices.

He stressed the need for better coordination across the gas value chain to ensure that increased production translated into greater domestic consumption rather than remaining concentrated at the upstream end.

Speaking during a conference panel, Ogunleye said dependable gas supply was fundamental to attracting investment, warning that projects could struggle if developers failed to secure reliable feedstock, appropriate financing and suitable partners from the outset.

He also maintained that Nigeria should not view domestic gas consumption and exports as competing priorities.

According to him, the country’s gas strategy combines foreign exchange earnings from exports with domestic utilisation to support industrialisation, transportation and energy security.

Nigeria has more than 215 trillion cubic feet of proven gas reserves, while government plans seek to expand the resource base towards 600 trillion cubic feet.

The Gas Master Plan targets national gas production of 10 billion standard cubic feet per day by 2027 and 12 billion standard cubic feet per day by 2030.

Government targets domestic, export markets

The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, said the Federal Government was pursuing increased domestic gas consumption alongside opportunities in international markets amid disruptions in global energy supply.

Ekpo said Nigeria was expanding production and infrastructure to meet domestic, regional and international demand.

He pointed to measures introduced under the Petroleum Industry Act and subsequent executive orders to improve the investment environment, but acknowledged that the country’s vast gas reserves would not automatically translate into economic benefits without the necessary infrastructure, technology and financing.

“Resources alone without provision of infrastructure, technology and financing cannot take us anywhere,” he said.

Nigeria currently supplies gas to countries including Ghana and Togo while pursuing wider regional export projects.

The government is also engaging on pipeline initiatives involving Morocco, Algeria and Equatorial Guinea, while domestic projects such as the OB3 and Ajaokuta-Kaduna-Kano gas pipelines are expected to connect production centres with additional markets.

Ekpo said domestic consumers would remain a priority, with producers required to meet domestic gas obligations before exporting surplus volumes.

The government is also offering incentives, including tax waivers for some gas-related equipment, to encourage investment in the sector.

CNG drive gains urgency

The expansion of domestic gas supply is closely linked to the Presidential Initiative on CNG, under which the government is supporting the deployment of CNG buses, vehicle conversions and refuelling stations.

The initiative has assumed greater urgency as petrol prices continue to expose motorists and businesses to higher transportation and operating costs.

A wider CNG network could provide commercial transport operators and businesses with an alternative fuel option, although its benefits will depend on reliable gas supply, adequate refuelling infrastructure and the cost of converting vehicles.

Electric mobility also offers another route to reducing dependence on petrol and diesel, with electric cars, trucks, tricycles and motorcycles capable of lowering fuel expenses where charging infrastructure and reliable electricity are available.