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Sharing Ideas and Updates on LPG in Nigeria and related information to enable effective collaboration within the LPG Value Chain
NIGERIA’S MIDSTREAM & DOWNSTREAM OUTLOOK- LPG AND CNG OUTLOOK SHEET (OCTOBER 2025).
NIGERIA’S MIDSTREAM & DOWNSTREAM OUTLOOK- LPG AND CNG OUTLOOK SHEET (OCTOBER 2025).
Nigeria’s energy landscape is undergoing one of its most transformative phases in decades. The newly released Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) Fact Sheet for October 2025 presents a detailed snapshot of performance across gas processing, domestic utilization, LPG supply, and the fast-rising CNG ecosystem. This blog breaks down the most important insights highlighting achievements, gaps, and what they mean for Nigeria’s energy future.
Gas Processing Capacity: Nigeria Is Expanding, but Utilization Remains Modest
The fact sheet reveals a total gas conditioning, treatment, and processing capacity of:
17.2 bscf/day combined
Actual operating capacity at 3.94 bscf/day (36% utilization)
Key Breakdown:
Category Capacity
Gas Processing6.1 bscf/day
Gas Conditioning & Treatment Plants11.05 bscf/day
Average Operating Capacity (2025)3.94 bscf/day
While installed capacity is strong, actual utilization remains relatively low. This highlights ongoing challenges such as feedstock availability, infrastructure gaps, and pipeline constraints. However, it also signals significant untapped potential for investors and policymakers.
Utilization Rates of Major Gas Facilities
Some key gas facilities show strong performance:
NLNG (Trains 1–6) → 3.5 bscf/day (71.16% utilization)
MPNU BRT → 0.685 bscf/day
Escravos Gas Plant → 0.68 bscf/day (75.57% utilization)
The high utilization levels of NLNG and Escravos demonstrate continued reliability in Nigeria’s export-oriented gas facilities.
Domestic Gas Supply: Power Sector Leads Demand
From Q1–Q3 2025, domestic gas deliveries to key sectors were:
Sector Supply
Gas-to-Power0.641 bscf/day
Gas-to-Commercial0.522 bscf/day
Gas-based Industries0.409 bscf/day
The power sector remains the backbone of domestic gas demand, reinforcing the crucial role of natural gas in stabilizing Nigeria’s electricity grid.
LPG Market: Consumption Reaches New Peaks
Between October 2024 and October 2025:
Average Daily Consumption → 4,410 mt/day
Highest Monthly Consumption (Aug 2025) → 6,711 mt/day
Average Daily Supply → 5,700 mt/day
Notably, the report highlights:
Strong domestic LPG production (avg. +88%) significantly reducing import dependency (avg. -12%). This marks a major milestone in Nigeria’s move toward cleaner household cooking fuel and reduced forex pressure.
The Presidential CNG Initiative (PCNGi): A Transformational Leap
One of the most impressive parts of the fact sheet is the aggressive rollout of the CNG-driven national mobility ecosystem.
Vehicle Conversion Progress
100,000 cars converted
4,613 tricycles deployed
16,000 trucks deployed (including 4,000 CNG trucks from the Dangote fleet)
547 buses deployed
This is one of Africa’s most ambitious clean mobility transitions.
Infrastructure Expansion
369 Conversion Centres
68 Auto Gas Stations
150 new stations under construction
27 Mother Stations, including mini-LNG sites currently being developed
This network is laying the foundation for a mass-market CNG future, safer, cleaner, cheaper transport for millions.
CNG Pricing Strategy
Concessionary wholesale price: US$1.57/MMBTU
This keeps CNG significantly cheaper than petrol or diesel, making it attractive to transport operators.
Economic Impact
US$0.99 billion in total investments
10,000 direct jobs
70,000 indirect jobs
These numbers underline CNG’s importance not just as an energy alternative, but also as a national economic driver.
What These Numbers Mean for Nigeria’s Energy Transition
a. Nigeria is shifting from imports to domestic production.
The surge in LPG output and reduction in imports reflect a maturing local market and improved refinery and gas plant activity.
b. CNG is becoming a national priority.
With tens of thousands of vehicles converted and hundreds of infrastructure sites, CNG is emerging as a true alternative to PMS.
c. Gas remains Nigeria’s next frontier.
Despite underutilization of installed capacity, the infrastructure foundation is solid. Better pipeline connectivity, stable policies, and investment incentives could unlock billions in additional value.
d. Jobs and local capacity are expanding.
Industry growth is creating thousands of new skilled roles — from technicians to station operators and CNG engineers.
Conclusion: A Sector in Transition, Poised for Growth
The October 2025 NMDPRA Fact Sheet paints a picture of a sector that is evolving rapidly. While challenges remain, especially around utilization and infrastructure constraints, the progress in LPG supply and the explosive growth of the CNG ecosystem are strong indicators of forward momentum. If Nigeria continues to push gas availability, infrastructure, and affordability, the midstream and downstream sectors could become cornerstones of economic diversification, energy security, and clean energy transition.
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