By Seun Ibiyemi
The Nigerian National Petroleum Company Limited (NNPC Limited) has announced that gas supply through the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline Project to Abuja for power generation will commence next month.
The Group Chief Executive Officer of NNPC Limited, Bashir Bayo Ojulari, disclosed this on Wednesday at the ongoing 2026 Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) in Abu Dhabi, United Arab Emirates.
Ojulari said the 614-kilometre AKK pipeline would initially deliver gas to Abuja, with supplies expected to extend to Kaduna and Kano by 2027 to support power generation, industrial activities and other economic operations.
Speaking during an Energy Talk session titled, “Nigeria’s Reform Agenda: Competing for Energy Capital,” the NNPC boss said the development would mark a significant step towards unlocking Nigeria’s domestic gas potential.
He disclosed that the Obiafu-Obrikom-Oben (OB3) gas pipeline project had achieved 100 per cent completion, with a capacity to transport up to one billion cubic feet of gas daily.
According to him, “The OB3 was 100 per cent completed, and now we are ramping up production. It has capacity to go to one bcf of gas supply for the country. And then we are moving to the AKK.
“Excitingly, we are looking forward to bringing gas to Abuja for power generation before the end of this year. And by next year, we are looking forward to then expand into the other nodes, which is Kaduna and Kano, that are the true hubs in the north.”
He said the projects would also facilitate the connection of data centres and industrial hubs to reliable gas supplies, creating opportunities for increased economic activities and industrial development.
On developments in the domestic energy market, Ojulari said the Federal Government’s Compressed Natural Gas (CNG) programme, introduced following the removal of petrol subsidy in 2023, had helped reduce transportation costs by as much as 60 per cent.
He disclosed that more than 400 CNG conversion centres were currently operating across the country, providing vehicle conversion services and training on the use of CNG-powered engines.
The NNPC GCEO added that more than 1,000 trucks transporting petroleum products across the country had also switched to CNG.
He said the company was targeting an expansion of the conversion infrastructure to more than 1,000 stations by the end of 2027.
According to him, the initiative was designed to reduce dependence on petrol, lower transportation expenses and encourage the adoption of alternative fuels.
On the proposed Initial Public Offering (IPO) of NNPC Limited, Ojulari said the company was ready for the process but declined to disclose a specific timeline for its commencement.
He explained that the timing would depend on a resolution by the company’s Board.
The NNPC chief also disclosed that the company conducted a baseline study in September to assess its operations, assets and business structure as part of efforts to strengthen its corporate performance.
Ojulari further disclosed that Nigeria’s position in the global liquefied natural gas (LNG) market would receive a boost from the planned commissioning of Train 7 at Nigeria LNG Limited next year.
He said the project was expected to increase the company’s annual LNG production capacity from approximately 22 million tonnes to 30 million tonnes.
“The commissioning is in for next year. We hope to commission Train Seven next year, and from next year, we’re taking the total LNG output from NLNG from about 22 tons to 30,” he said.
He also revealed that the number of active oil rigs in Nigeria had increased to 70, indicating improved upstream activity in the country’s petroleum industry.
Meanwhile, NNPC Limited’s Executive Vice President, Upstream, Udy Ntia, said the company was prioritising operational resilience, cost management and technological improvements to sustain production and strengthen its upstream portfolio.
Ntia, who spoke during a panel session titled, “Upstream Portfolio Resilience: Designing for Political and Market Stress,” said the company was focused on containing production costs, preventing cost overruns and scaling operations efficiently.
He identified technology-driven operational improvements, particularly predictive maintenance of subsea infrastructure across West Africa, as critical to reducing disruptions and improving asset performance.
According to him, NNPC Limited was also seeking to avoid rigid portfolio restrictions that could extend beyond normal operational timelines and affect future business opportunities.
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He said the company’s strategy included expanding exploration activities, developing product-to-market pipelines, constructing alternative pipeline infrastructure to manage outages and strengthening resilience across the entire production chain, from reservoirs to revenue generation.
In another panel session titled, “Upstream Consolidation: Competitive Advantage and the Limits of Scale,” the Managing Director of NNPC 18, Ibiyemi Asaolu, challenged the industry’s description of interrupted oil output as deferred production.
Asaolu argued that production lost during operational disruptions could not simply be recovered when abandoned or shut-in wells resumed operations.
She explained that companies suffered financial losses when production stopped, even if operations eventually resumed.
“And I really do not agree with it when people call production deferred. When you lose production for a month and then you come back to start producing, it is not deferred; the money is gone. You really cannot recover that,” she said.
Her comments highlighted the financial implications of production interruptions and the importance of maintaining operational continuity in Nigeria’s upstream petroleum industry.
The 2026 ADIPEC, hosted by ADNOC in Abu Dhabi, has brought together international energy executives, investors, policymakers and industry stakeholders to discuss energy security, investment opportunities, technological innovation and developments shaping the global oil and gas industry.
