Nigerian National Petroleum Company Limited signed a memorandum of understanding with China Gas Holdings Limited and Peiyang Chemical Singapore PTE Ltd on Monday, according to local reports. Officials held the signing at NNPC Ltd.’s headquarters in Abuja.
The agreement outlines cooperation across different parts of the gas value chain. The partners plan to work on liquefied natural gas development, use gas that is often flared because infrastructure is limited, and explore floating LNG and onshore facilities. They also intend to develop gas-to-power projects and industrial infrastructure that runs on domestic gas.
The memorandum does not confirm any final investment decision. The partners will proceed only after completing technical and economic studies, signing formal contracts, and securing financing. They have not disclosed the investment value.
Nigeria has the largest proven gas reserves in Africa and ranks among the top globally, based on data from BP. Despite this, the country continues to flare large volumes of gas because infrastructure to capture and commercialize associated gas from oil fields remains limited.
To respond to this gap, authorities introduced the Decade of Gas Initiative in 2021, formally launched by the presidency in March of that year. The policy places gas at the center of energy transition plans and industrial growth by encouraging domestic use, expanding infrastructure, and reducing flaring.
The Petroleum Industry Act strengthened the regulatory framework for gas commercialization. The Nigerian Upstream Petroleum Regulatory Commission continues to implement the Nigerian Gas Flare Commercialization Program, which aims to capture associated gas that would otherwise be flared.
On January 30, 2026, the government announced an investment plan worth about $60 billion through 2030. Called the Gas Master Plan 2026, it covers the entire oil and gas value chain and targets daily production of 12 billion cubic feet by 2030.
source: www.ecofinagency.com
African Energy Council