The Federal Government is set to commence construction of a $100 million gas pipeline across the South-East in the first quarter of 2027, with gas delivery expected to begin in the second quarter of 2028.
The 400-kilometre pipeline will run from 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 the South East Investment Company (SEIC), is developing the project in partnership with GasSync and NNPC Gas Marketing Limited.
SEDC Managing Director, Mark Okoye, said the commission had committed $3 million to the initiative after completing technical, financial and legal due diligence. He added that the commission was seeking up to $30 million in regional investment to attract additional funding.
Speaking at the South-East Gas Infrastructure Investment and Project Development ceremony in Enugu on Tuesday, a GasSync representative, Callistus Mba, said the pipeline would serve about 150 prospective customers across the manufacturing, power generation and agro-processing sectors.
The project is expected to meet a projected gas demand of 254 million standard cubic feet per day.
Mba said the network would originate from Ohaji in Imo, pass through Owerri and Aba in Abia, connect to Onitsha in Anambra, and extend to Enugu and Ebonyi states.
He explained that bringing gas closer to industrial users would reduce reliance on road transportation of compressed natural gas and liquefied natural gas.
According to him, the project could support existing businesses, encourage new investments and help revive dormant industries. GasSync is already engaging potential customers, including Geometric Power in Abia, while opportunities are being explored for agro-processing enterprises in Ebonyi.
Mba added that procurement had commenced, preparations for engineering, procurement and construction were progressing, and financing arrangements were approaching financial close.
President Bola Tinubu, represented at the ceremony by Deputy Speaker of the House of Representatives, Benjamin Kalu, said the project would help address energy shortages that have constrained industrial development in the region.
Tinubu said the initiative was intended not only to supply existing factories but also to enable the establishment of new industries, industrial parks and businesses that had been unable to proceed because of unreliable energy supply.
He called on development finance institutions to work with private investors to raise the estimated $100 million required for the initial phase.
The president also stressed the need for transparency, commercial discipline, environmental responsibility, community participation and strict compliance with safety standards. He urged the project developers to establish clear implementation timelines and provide regular progress reports.
Enugu State Governor Peter Mbah described the agreement as an important step towards industrial investment in the South-East and pledged the support of regional governments.
Mbah said the governors would work to accelerate right-of-way approvals and environmental impact assessments to facilitate construction.
Imo State Deputy Governor Chinyere Ekomaru highlighted the state’s gas resources and the opportunities around the Assa North-Ohaji South gas development.
Anambra Deputy Governor Onyekachukwu Ibezim appealed to communities along the proposed route to support the project, while Ebonyi Deputy Governor Patricia Obila said improved gas supply could help businesses expand and inactive companies resume operations.
Mary Ogbe, Permanent Secretary of the Federal Ministry of Regional Development, said the SEDC’s initiatives were aimed at improving living standards and complementing the development efforts of state governments.