The Federal Government has announced plans to commence construction of a $100 million gas pipeline project across the South-East in the first quarter of 2027, with gas delivery expected to begin in the second quarter of 2028.
The proposed 400-kilometre pipeline will connect the ANOH Gas Processing Plant in Imo State to major industrial and commercial centres across Abia, Anambra, Ebonyi, Enugu and Imo states.
The South-East Development Commission (SEDC), through the South-East Investment Company (SEIC), is developing the project in partnership with GasSync and NNPC Gas Marketing Limited (NNPC NGML), according to a statement issued on Wednesday.
Managing Director and Chief Executive Officer of SEDC, Mark Okoye, said the commission had committed $3 million to the project following technical, financial and legal due diligence.
Okoye added that the commission was seeking to mobilise up to $30 million in regional investment participation to attract additional funding for the initiative.
The project timeline was disclosed by Callistus Mba, a representative of GasSync, at the South-East Gas Infrastructure Investment and Project Development ceremony held in Enugu on Tuesday.
Mba said the pipeline was expected to serve approximately 150 prospective customers across the manufacturing, power generation and agro-processing sectors, with projected gas demand of 254 million standard cubic feet per day.
According to him, the pipeline network would originate from Ohaji in Imo State, pass through Owerri and connect Aba in Abia State and Onitsha in Anambra State, with extensions to Enugu and Ebonyi states.
He explained that the project would bring gas supplies closer to industrial consumers, reducing reliance on the road transportation of compressed natural gas (CNG) and liquefied natural gas (LNG).
Mba disclosed that GasSync was engaging prospective customers, including Geometric Power in Abia State, while the project was also expected to support the revival of dormant industries in Enugu and promote agro-processing businesses in Ebonyi.
He added that procurement activities had commenced, preparations for engineering, procurement and construction were progressing, and funding arrangements were advancing towards financial close.
President Bola Tinubu, represented at the ceremony by Deputy Speaker of the House of Representatives, Benjamin Kalu, said the project would address energy supply constraints that had hindered 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,” the President said.
Tinubu stated that the initial phase would require approximately $100 million, urging development finance institutions to leverage public funding to attract significant 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.
The President stressed that implementation must be guided by commercial discipline, transparency, environmental responsibility, community engagement and strict adherence to safety standards.
He also called for clearly defined timelines, implementation milestones and regular progress reports, noting that the initiative was part of broader efforts to translate the South-East’s economic potential into industrial production, employment opportunities and shared prosperity.
Enugu State Governor Peter Mbah described the agreement as a significant step towards strengthening the region’s industrial development and pledged the support of state governments for the project.
“What we have just signed here today is an investment agreement, meaning that investment has commenced,” Mbah said.
He added that South-East governors would expedite right-of-way approvals and environmental impact assessments to facilitate the pipeline’s implementation.
Imo State Deputy Governor Chinyere Ekomaru said the state’s gas resources positioned it to benefit from the project, highlighting opportunities for gas offtakers around the Assa North-Ohaji South gas development.
Similarly, Anambra State Deputy Governor Onyekachukwu Ibezim urged communities along the proposed 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.
Ebonyi State Deputy Governor Patricia Obila also pledged the state’s support, noting that improved energy availability could strengthen businesses and enable inactive companies to resume operations.
Permanent Secretary of the Federal Ministry of Regional Development, Mary Ogbe, said the SEDC’s initiatives were designed to improve living standards and complement the development efforts of state governments.
When completed, the pipeline is expected to strengthen gas availability for industries across the five South-East states, potentially lowering energy supply constraints, encouraging new investments and creating opportunities for industrial growth across the region
