The federal government has announced plans to begin construction of a $100 million gas pipeline connecting five South-East states in the first quarter of 2027, as it seeks to expand gas access for industries and unlock investment in the region.
The 400-kilometre pipeline will link the ANOH gas processing plant in Imo State to industrial and commercial centres across Imo, Abia, Anambra, Enugu and Ebonyi, with first gas delivery projected for the second quarter of 2028.
The South East Development Commission (SEDC), through its investment arm, the South East Investment Company (SEIC), is developing the project in partnership with GasSync and NNPC Gas Marketing Limited (NNPC NGML), according to a note issued on Wednesday.
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.
The commission is also targeting up to $30 million in regional investment participation to mobilise additional capital for the project.
Callistus Mba, a representative of GasSync, disclosed the project timeline at the South-East Gas Infrastructure Investment and Project Development ceremony in Enugu, where he said the pipeline would serve about 150 prospective customers in manufacturing, power generation and agro-processing.
The customers have projected gas demand of 254 million standard cubic feet per day, Mba said.
The network originates from Ohaji in Imo, passes through Owerri and Aba in Abia before connecting Onitsha in Anambra, with extensions to Enugu and Ebonyi States.
Mba said the project would bring gas closer to industrial users and reduce the need to transport compressed natural gas and liquefied natural gas by road.
GasSync is engaging prospective customers, including Geometric Power in Abia, while the pipeline could support the revival of inactive industries in Enugu and the development of agro-processing businesses in Ebonyi.
According to Mba, procurement has commenced, engineering, procurement and construction preparations are progressing, and funding arrangements are moving towards financial close.
President Bola Tinubu, represented by Benjamin Kalu, deputy speaker of the House of Representatives, said the project was intended to address energy constraints that have limited industrial expansion in the South-East.
‘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.
According to him, the initial phase would require about $100 million, calling on development institutions to help mobilise private investment alongside public funding.
‘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.
The president said the project must be implemented with commercial discipline, transparency, environmental responsibility, community engagement and adherence to safety standards.
He also called for clear timelines, implementation milestones and regular progress reports.
Peter Mbah, Enugu governor, described the agreement as a step towards investment in the region’s industrial development, pledging support from state governments.
‘What we have just signed here today is an investment agreement, meaning that investment has commenced,’ Mbah said.
He said the South-East governors would accelerate right-of-way approvals and environmental impact assessments to facilitate the project.
Onyekachukwu Ibezim, Anambra deputy governor, urged communities along the pipeline route to support its implementation.
‘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.