OB3 Delay Shifts Nigeria’s Gas Balance

  • The OB3 pipeline delay continues to undermine domestic gas distribution despite resumed construction efforts.
  • Seplat’s ANOH project delivers first gas and accelerates exports amid infrastructure uncertainty.

The Obiafu-Obrikom-Oben (OB3) pipeline delay continues to reshape Nigeria’s domestic gas outlook despite Seplat Energy’s progress at the ANOH project. As infrastructure setbacks persist, operators face hard choices on gas evacuation. Consequently, export routes increasingly compete with domestic supply priorities.

Nigerian National Petroleum Company Limited (NNPC) has struggled to deliver the Obiafu-Obrikom-Oben pipeline since 2014. Therefore, gas intended for local consumption has remained stranded. Meanwhile, Seplat achieved first gas at the 300 million standard cubic feet per day ANOH project. This milestone followed the activation of four upstream wells that had been on standby since November 2025.

However, the OB3 pipeline delay has forced Seplat to consider alternative evacuation strategies. As a result, preparations are underway to sell processed gas to Nigeria LNG. These sales will occur on an interruptible offtake basis. Thus, export channels now offer certainty amid domestic infrastructure gaps.

According to NNPC, contractors have mobilised equipment, materials, and personnel to the OB3 River Niger crossing. Additionally, geotechnical data acquisition is complete, and early construction works continue. Nevertheless, the project has missed several completion and commissioning targets. Consequently, operators remain cautious.

Following regulatory approval from the Nigerian Upstream Petroleum Regulatory Commission, ANOH Gas Processing Company commenced supply to Indorama on January 16, 2026. Since then, wet gas output has stabilised between 40 and 52 million standard cubic feet daily. Moreover, condensate production has reached 2.0 to 2.5 thousand barrels daily.

Preparations also continue for gas deliveries to NLNG. This step will support the plant’s gradual ramp-up towards its 300 MMscfd design capacity. Meanwhile, construction on the OB3 export route has resumed under the Nigerian Gas Infrastructure Company. A revised completion date remains pending.

AGPC developed the ANOH plant as a joint venture between Seplat Energy and NGIC. The facility includes dual processing units, LPG recovery systems, and a 16MW power plant. Notably, the design targets zero routine flaring.

Across OML 53 and OML 21, the project unlocks about 4.6 trillion cubic feet of gas resources. Therefore, Seplat expects sustained revenue from gas sales and dividends. Additionally, LPG output will strengthen the domestic supply of clean cooking fuel.

Seplat delivered the project safely, with no lost-time incidents across 17.5 million man-hours. Chief Executive Officer Roger Brown described ANOH as a strategic national asset. He also noted its role in boosting energy access and reducing carbon intensity.

 

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