Nigeria has demonstrated capacity to deliver bankable and technically complex gas projects where commercial, regulatory and institutional frameworks are properly aligned, Effiong Okon, managing director of the ANOH Gas Processing Company Limited (AGPC) said.
Speaking at the Society of Petroleum Engineers (SPE) Lagos Section Energy Week held at the Landmark Event Centre, Okon said the ANOH milestone signals a new phase of maturity for Nigeria’s gas sector.
“What this project demonstrates very clearly is that when the right commercial structures, partnerships and regulatory alignment are in place, large-scale gas developments can transition efficiently from concept to operation,” he said during a panel session themed “Upstream Gas in Nigeria: Scaling Production for Regional Energy Security and Sustainable Growth.”
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Investor appetite intact
The ANOH project, developed by a joint venture between NNPC Limited and Seplat Energy Plc, raised $420 million in equity, $40 million in shareholder loans, $320 million in debt from a consortium of seven banks, and secured a $30 million prepayment from a condensate offtaker.
According to Okon, the financing structure underscores sustained investor confidence in Nigeria’s gas sector, where projects are well-governed and commercially structured.
“You can see clearly that investors are interested in well-governed gas projects in Nigeria and are willing to back them,” he said.
The plant currently delivers between 40 and 80 million standard cubic feet per day (MMscfd) of processed gas to Indorama, with condensate production ranging between 2,000 and 6,000 barrels per day. It is designed to ramp up to a nameplate capacity of 300 MMscfd for wet gas processing.
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The facility comprises two 150 MMscfd processing trains, LPG recovery units, condensate stabilisation systems and a dedicated 16MW power plant.
Regulatory reforms gaining traction
Okon attributed the smooth commissioning of the project to improvements in midstream regulation, noting that a landmark approval by the Nigerian Midstream and Downstream Petroleum Regulatory Authority enabled gas flow to commence on January 16, 2026.
He said reforms under the Petroleum Industry Act (PIA), including attractive fiscal terms for midstream gas, are beginning to yield tangible outcomes.
At the infrastructure level, he pointed to ongoing expansion efforts by the Nigeria Gas Infrastructure Company, particularly the resumption of construction on the OB3 Pipeline, as critical to strengthening domestic gas evacuation capacity.
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However, infrastructure gaps remain a binding constraint. Although ANOH was technically ready from November 2025, the primary export route via OB3 was delayed to the second quarter of 2026. An interim arrangement to supply gas to Nigeria LNG Limited stalled due to commercial issues between the operator and NLNG, delaying early revenue streams.
Such delays, Okon noted, carry significant implications for lenders whose repayment schedules were predicated on timely product sales.
Complex delivery environment
Okon described large-scale integrated midstream projects as inherently exposed to technical, commercial, organisational and political risks. While many engineering challenges mirror those encountered globally, he said projects in Nigeria face additional above-ground risks.
For ANOH, key technical challenges included the development of dual processing trains, LPG recovery systems and condensate stabilisation units, alongside a dedicated power plant. The project adopted a split-form contracting model with seven distinct packages rather than a single EPC structure, increasing interface management complexity.
The project was also delivered amid severe macroeconomic headwinds. Foreign exchange volatility saw the naira weaken from around N200 to nearly N2,000 to the dollar during the project lifecycle, while interest rates rose sharply to about 28 percent. The COVID-19 pandemic, contractor insolvency, geotechnical survey deficiencies and export route delays further compounded execution risks.
Organisationally, the ANOH Gas Processing Company was incorporated in 2017 and reached Final Investment Decision in 2019 without an established delivery track record, operating with a mix of secondees and new hires.
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Despite these hurdles, the project was completed without a single Lost Time Incident across 17.5 million man-hours, which Okon described as a testament to disciplined governance and safety culture.
Decade of Gas momentum
Although ANOH predated Nigeria’s Decade of Gas initiative, Okon said lessons from the project have helped shape the programme’s focus areas, including supply expansion, commercial reforms, infrastructure development and flaring reduction.
He noted that clearer national signalling around gas as the cornerstone of Nigeria’s industrialisation strategy has improved regulatory responsiveness and strengthened investor confidence.
ANOH contributes directly to cleaner energy objectives by producing LPG and processing gas that would otherwise have been flared from the Ohaji field.
Molecules to electrons
Okon characterised gas scale-up as a “journey from molecules to electrons,” requiring coordinated development across drilling, processing, transportation, distribution and end-use demand.
“To scale gas, you need offtakers at scale,” he said, adding that demand creation, pricing reforms and infrastructure build-out must move in tandem.
