The recent FID on Shell’s HI offshore gas project, in partnership with Sunlink Energies, illustrates the scale of Nigeria’s deepwater gas potential, with approximately 350 million cubic feet per day slated for delivery to NLNG Train 7. While the project is predominantly export-focused, its FID underscores the broader imperative: as new gas supply comes online, careful structuring of domestic offtake and export optionality will be critical to ensuring industrial and power sectors can access gas at commercially viable terms.

In line with this strategic vision, the NUPRC has unveiled a roadmap designed to attract over $4.9 billion in gas investment. The roadmap emphasizes policies that encourage private participation in domestic gas monetization, support the development of midstream infrastructure and incentivize gas utilization for industrial clusters, power generation and local content development. This dual approach – promoting exports while anchoring domestic growth – reflects Nigeria’s recognition that gas is both a strategic economic lever and a bridge fuel for energy transition.

Several domestic gas infrastructure projects illustrate practical pathways for aligning supply and demand. The Ajaokuta-Kaduna-Kano pipeline expansion, combined with planned gas-to-power projects, can absorb domestic volumes from emerging fields, while industrial clusters in Lagos, Ogun and Delta states provide anchor customers for long-term gas contracts. Structuring offtake agreements with transparent pricing and flexible delivery terms will be key to avoiding bottlenecks and ensuring that domestic industrialization is not sidelined by export obligations.

Looking ahead to 2026, the Paris-based Invest in African Energy (IAE) Forum will provide a crucial venue to tackle these challenges. Policymakers, NOCs, independent producers and financiers will convene to discuss models for domestic offtake prioritization, midstream infrastructure financing and optionality for exports. One anticipated focus is on enabling producers to commit flexible volumes to domestic users while retaining the ability to deliver surplus to LNG or regional markets. By aligning contractual frameworks, fiscal incentives and financing mechanisms, stakeholders aim to create a more integrated gas sector that simultaneously supports industrialization, power generation and export revenues.

Nigeria’s frontier deepwater basins continue to be a magnet for exploration capital, with projects in the Niger Delta and offshore areas poised to expand supply. However, the lesson from projects like Shell HI is clear: without deliberate structuring of domestic offtake, new gas discoveries may primarily feed export markets, leaving domestic power and industrial demand underserved. Investors and policymakers are increasingly focusing on mechanisms such as gas aggregation hubs and flexible pricing contracts to ensure that domestic gas markets can scale alongside export operations.

With appropriate planning and investment, Nigeria can optimize the value of its 55 TCF of uncommitted reserves, support industrial and electricity demand and maximize revenue from LNG and regional gas exports. The upcoming IAE Forum in Paris will provide a timely opportunity to align strategies, share expertise and build the partnerships needed to advance the country’s gas ambitions.

IAE 2026 is an exclusive forum designed to connect African energy markets with global investors, serving as a key platform for deal-making in the lead-up to African Energy Week. Scheduled for April 22–23, 2026, in Paris, the event will provide delegates with two days of in-depth engagement with industry experts, project developers, investors and policymakers. For more information, visit www.invest-africa-energy.com. To sponsor or register as a delegate, please contact sales@energycapitalpower.com