• NNPC signs gas cooperation MoU with China Gas, PCCS
• Deal covers LNG, gas-to-power, flaring commercialization
• Nigeria targets 12 bcf/d gas output by 2030

Nigeria's state oil company signed a memorandum of understanding with China Gas Holdings Limited and Peiyang Chemical Singapore PTE Ltd (PCCS) on Monday, local media reported. The signing ceremony was held at the Nigerian National Petroleum Company Limited (NNPC Ltd) headquarters in Abuja.

The agreement sets out cooperation across several segments of the gas value chain, including liquefied natural gas (LNG) development, the commercialization of associated gas typically flared because of insufficient infrastructure, floating LNG projects and onshore facilities. It also covers gas-to-power projects and industrial infrastructure powered by domestic gas.

The memorandum is not a final investment decision. The project will move forward only after technical and economic studies, formal contracts and financing are secured. No investment amount was disclosed.

Africa's Top Gas Reserves, Yet a Major Flaring Nation

Nigeria holds the largest proven gas reserves in Africa and ranks 10th globally, according to the BP Statistical Review of World Energy. Yet it remains one of the world's leading gas-flaring countries due to limited infrastructure to capture and commercialize associated gas produced from oil fields.

To address this, authorities launched the Decade of Gas Initiative in 2021, formally launched by the presidency in March of that year. The policy aims to make gas central to the country’s energy transition and industrial growth by boosting domestic consumption, expanding infrastructure and cutting flaring.

The Petroleum Industry Act (PIA) of 2021 strengthened the regulatory framework to support gas commercialization. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) continues to implement the Nigeria Gas Flare Commercialisation Programme (NGFCP), which seeks to capture associated gas.

On Jan. 30, 2026, the government unveiled a roughly $60 billion investment plan through 2030. Known as the Gas Master Plan 2026, it covers the full oil and gas value chain and targets production of 12 billion cubic feet per day by 2030.

Abdel-Latif Boureima