Nigeria’s Idle Gas Processing Capacity Raises Questions Over Africa’s LPG Supply

Nigeria’s 47 gas-processing plants operated at 51.86% of installed capacity in September 2026, according to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

Their combined processing capacity stood at 16.187 billion cubic feet per day, against average throughput of 8.394 billion cubic feet. Approximately 7.793 billion cubic feet of nominal daily capacity remained unused.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) reported 215.19 trillion cubic feet of proven and probable natural gas reserves as of January 2026, comprising 100.21 trillion cubic feet of associated gas and 114.98 trillion cubic feet of non-associated gas.

The reserves include gas that could support additional processing, although the amount available for LPG production depends on feedstock composition and recovery facilities.

Nigeria LNG Limited (NLNG) supplies more than 500,000 tonnes of LPG annually to the domestic market from its Bonny Island operations in Rivers State.

The Utorogu development in Delta State includes LPG recovery facilities, while the Assa North–Ohaji South (ANOH) project in Imo State is expanding gas-processing operations. Their additional contribution to cooking-gas supply depends on confirmed LPG production capacity and operating output.

The International Energy Agency (IEA) reported in November 2026 that clean cooking access in Africa was expanding 30% faster than the previous five-year average.

Nigeria’s unused processing capacity raises a production question: which facilities can recover additional propane and butane, and how much of that LPG can reach households through the country’s existing supply network?

Niger Delta Gas Projects Reveal Uneven LPG Production Potential

Nigeria LNG Limited’s (NLNG) Train 7 project is designed to increase LNG production capacity from 22 million to 30 million tonnes annually. Construction has passed 80% completion, according to the company’s published project information.

NLNG has not disclosed a separate incremental LPG production target for the expansion or specified how much additional cooking gas would enter Nigeria’s domestic market.

Southfield Petroleum Limited is developing a gas-processing facility at Utorogu in Delta State with capacity of 200 million standard cubic feet per day. The Nigerian Content Development and Monitoring Board (NCDMB) confirmed the project’s groundbreaking in April 2026.

Southfield projects annual production of 123,000 tonnes of LPG, 22,000 tonnes of propane and 72,000 tonnes of condensate. The first phase is scheduled for November 30 and includes gas treatment facilities and storage capacity for 1,200 tonnes of LPG. Commercial production has not been confirmed.

The Assa North–Ohaji South (ANOH) facility in Imo State began supplying processed gas to Indorama’s petrochemical operations in January 2026.

ANOH Gas Processing Company, jointly owned by Seplat Energy and Nigerian Gas Infrastructure Company, operates two processing units with combined capacity of 300 million standard cubic feet per day.

The plant includes LPG recovery equipment. Initial deliveries ranged from 40 million to 52 million cubic feet of gas daily, alongside condensate production of 2,000–2,500 barrels of oil equivalent per day. Seplat subsequently reported higher gas throughput without specifying the volume of LPG delivered to domestic buyers.

Seplat began commercial LPG and propane deliveries from its Sapele gas-processing facilities in Delta State in April 2026. The first loadout confirmed that the facilities had moved into commercial liquids supply, although the company’s reported milestone did not establish an annualised LPG production volume.

Nigeria’s Underused Gas Plants Face Different Production Constraints

Nigeria’s gas-processing plants recorded sharply different utilisation rates in September 2026. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) reported 95.36% utilisation at Gbaran Ubie, which processed 1.192 billion cubic feet daily against installed capacity of 1.25 billion cubic feet.

NLNG’s first six trains operated at 80.57%, while Obite recorded 46.93%. The OB/OB associated-gas plant processed 341 million cubic feet daily against capacity of 1.3 billion cubic feet, representing 26.23% utilisation. Utorogu NAG 1 and 2 operated at 17.65%, processing 90 million cubic feet against capacity of 510 million.

The September figures do not identify the causes of the shortfalls at Obite, OB/OB or Utorogu. Their lower operating rates cannot be attributed to feed-gas shortages, equipment failures or pipeline restrictions without facility-specific disclosures.

Seplat Energy has reported infrastructure constraints affecting its Assa North–Ohaji South (ANOH) operations in Imo State. In July, the company said the plant was operating at approximately 60% of capacity while awaiting additional gas evacuation routes.

Repairs to the Trans Niger Pipeline increased condensate evacuation capacity to 12,500 barrels daily, while a second truck-loading facility added capacity for another 6,000 barrels.

Commercial gas flows through the OB3 pipeline began on September 1, and Seplat reported ANOH utilisation of 70–80% during the third quarter.
Seplat also signed a 15-year agreement with Gwato Energy covering approximately 540 billion cubic feet of gas for processing at its Oben facilities. Deliveries are expected to begin in 2028, with the commercial arrangement covering LPG, propane, lean gas and condensate.

Pipeline engineering remained under development during the third quarter of 2026, leaving the additional feedstock outside current production.

The Nigerian Upstream Petroleum Regulatory Commission’s gas-flare commercialisation programme seeks to bring previously flared gas into productive use. However, the September processing statistics do not identify additional LPG volumes attributable to the programme or the Petroleum Industry Act.

ANOH’s operating improvement demonstrates the effect of expanded evacuation infrastructure on gas throughput, while the Oben agreement identifies a future feedstock source. Neither disclosure establishes the quantity of additional cooking gas available to Nigerian households.

Nigeria’s Domestic LPG Supply Faces Distribution and Import Pressures

Domestic producers supplied an average of 4,500 tonnes of liquefied petroleum gas (LPG) daily in September 2026, up 50% from August, according to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

Imports fell to approximately 200 tonnes daily, representing just 4.2% of total receipts. Market consumption, measured by volumes trucked out, reached 5,200 tonnes daily against receipts of approximately 4,700 tonnes.

NLNG and Seplat Exploration and Production Nigeria Unlimited supplied a combined 2,526 tonnes daily through vessel deliveries, accounting for 54.3% of September receipts.

Other gas-processing facilities contributed 1,229 tonnes through road transport, while Dangote Refinery delivered 701 tonnes daily. The regulator did not separately disclose NLNG’s and Seplat’s contributions within their combined deliveries.

National LPG stock sufficiency stood at 15.9 days in September, against the regulator’s 30-day threshold. The shortfall persisted despite domestic receipts reaching their joint-highest level in 13 months.

The difference between receipts and market dispatches does not establish a production shortage, as the published figures do not reconcile the movements in LPG inventories.

Retail prices ranged from ₦1,250 to ₦1,400 per kilogram in Lagos, compared with ₦1,550 to ₦1,600 in Bauchi. Kano recorded prices reaching ₦1,550 per kilogram.

These differences persisted during the recovery in domestic supply, although the regulator’s price data do not establish how much was attributable to transportation, storage or distribution expenses.

The September figures provide no confirmed surplus available for regional LPG exports. Domestic dispatches exceeded receipts, stock coverage remained below the regulatory threshold, and the published supply breakdown did not identify additional volumes committed to neighbouring countries.

Nigeria’s increased LPG production has reduced reliance on imports, but the regulator’s records have yet to establish a sustained supply surplus for expansion beyond its domestic market.

Nairobi Summit Puts Nigeria’s LPG Investment Plans Under Scrutiny

The International Energy Agency (IEA) will hold its second Summit on Clean Cooking in Africa in Nairobi on January 27–28, 2027, alongside Kenya, Norway and the United States.

The agency reported $900 million in additional financial commitments ahead of the meeting. Its November announcement did not identify any Nigerian gas-processing or LPG distribution project selected to receive the funding.

Nigeria’s gas-processing expansion remains largely dependent on decisions by operators and regulators. New LPG recovery projects require sufficient feedstock, financing and facilities to move production into the domestic market.

The country’s September supply figures also showed LPG inventories below the regulatory threshold, leaving additional production and distribution capacity relevant to any regional supply plans.

The IEA has not announced a Nigerian LPG investment proposal for Nairobi in the summit disclosures reviewed. Nigerian authorities and project developers have yet to establish which additional LPG volumes could be committed to clean cooking programmes, the financing required or when deliveries would begin.

Nigeria has processing capacity available, but the published project and market records do not establish how much additional LPG it can supply to African households.

Until operators disclose recoverable production volumes and firm delivery arrangements, the country’s unused gas-processing capacity remains an industrial resource rather than a quantified expansion in cooking-gas supply.