The Federal Government is targeting the first quarter of 2027 to begin construction of a $100 million gas pipeline project expected to improve energy supply, stimulate industrial activities and attract fresh investments across the South-East.
The 400-kilometre pipeline, which is projected to deliver its first gas in the second quarter of 2028, will connect the ANOH gas processing plant in Imo State to industrial and commercial centres in Abia, Anambra, Ebonyi, Enugu and Imo states.
The South-East Development Commission (SEDC), through its investment arm, the South-East Investment Company (SEIC), is spearheading the project in partnership with GasSync and NNPC Gas Marketing Limited (NNPC NGML).
Mark Okoye, managing director and chief executive officer of SEDC, said the commission had committed $3 million to the project after completing technical, financial and legal due diligence.
He disclosed that the commission was working to attract up to $30 million in regional investment to support the mobilisation of additional funds for the initiative.
The project timeline was announced by Callistus Mba, a representative of GasSync, during the South-East Gas Infrastructure Investment and Project Development ceremony in Enugu on Tuesday.
Mba said the pipeline was expected to supply about 150 prospective customers in manufacturing, power generation and agro-processing, with projected demand of 254 million standard cubic feet of gas per day.
He explained that the network would begin at Ohaji in Imo State, pass through Owerri and connect Aba in Abia State and Onitsha in Anambra State, with further extensions to Enugu and Ebonyi.
According to him, the project would bring natural gas closer to businesses and reduce the cost and logistical challenges associated with transporting compressed natural gas and liquefied natural gas by road.
Mba said GasSync was already engaging potential customers, including Geometric Power in Abia, adding that the infrastructure could help revive dormant industries in Enugu and support agro-processing investments in Ebonyi.
He also disclosed that procurement had commenced, preparations for the engineering, procurement and construction phase were progressing, and discussions on financing were moving towards financial close.
Tinubu: Project will unlock new industries
President Bola Tinubu, represented at the event by Deputy Speaker of the House of Representatives Benjamin Kalu, said the proposed pipeline would help overcome energy shortages that had hindered industrial expansion in the South-East.
The president said the initiative was designed not only to serve existing factories but also to encourage the establishment of new manufacturing facilities, industrial parks and businesses whose investment plans had been constrained by unreliable energy supply.
“Our ambition is not simply to deliver gas to existing factories. It is to make possible factories that do not yet exist, industrial parks yet to be developed, and investments that have remained on the drawing board because reliable energy was unavailable,” Tinubu said.
He put the cost of the initial phase at about $100 million and called on development institutions to deploy public funding strategically to attract private sector investment.
“This is the model I expect from our development institutions: identify strategic economic opportunities, prepare credible projects, commit public resources responsibly and mobilise private capital at a scale government budgets alone cannot achieve,” he said.
Tinubu stressed the importance of transparency, commercial discipline, environmental protection, community engagement and strict adherence to safety standards throughout the project's implementation.
He also demanded clear delivery schedules, measurable milestones and regular progress reports, saying the pipeline should translate the South-East's economic potential into increased production, employment opportunities and broader prosperity.
Governors promise faster approvals
South-East governors have pledged their support for the project, including efforts to facilitate approvals and address administrative obstacles that could delay construction.
Enugu State Governor Peter Mbah described the investment agreement as a significant step towards developing the region's industrial economy.
“What we have just signed here today is an investment agreement, meaning that investment has commenced,” Mbah said.
He assured the project developers that the state governments would work to accelerate right-of-way approvals and environmental impact assessments needed for the pipeline.
Imo State Deputy Governor Chinyere Ekomaru said the state stood to benefit from the project because of its gas resources, drawing attention to potential offtakers around the Assa North-Ohaji South gas development.
Her Anambra counterpart, Onyekachukwu Ibezim, appealed to communities along the pipeline route to cooperate with the developers and support the project.
“I want to urge the communities through which the pipelines will pass to have a buy-in. We are strongly behind the commission,” Ibezim said.
Ebonyi State Deputy Governor Patricia Obila also pledged support, noting that more reliable energy supply could help businesses expand and allow inactive companies to return to production.
Mary Ogbe, permanent secretary of the Federal Ministry of Regional Development, said the SEDC's programmes were designed to improve living standards and complement development initiatives by the state governments.
The pipeline is expected to strengthen the region's access to natural gas, a key input for electricity generation and several industrial processes.
However, the anticipated economic benefits will depend on the timely completion of the infrastructure, the mobilisation of the required capital and the ability to secure sufficient demand from industrial customers.
With procurement underway and financing arrangements progressing, the next phase will be critical to determining whether the project can meet its proposed 2027 construction start and 2028 gas delivery targets.
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