A $100 million gas distribution pipeline project designed to supply industries across the five South-East states is expected to begin construction in the first quarter of 2027, with first gas delivery projected for the second quarter of 2028.
The project promoter, GasSync, disclosed this during the signing of an investment agreement at the South-East Gas Infrastructure Investment and Project Development Ceremony held at Hotel Presidential in Enugu on Tuesday.
The 400-kilometre pipeline will connect gas resources in Imo State to industrial and commercial centres across Abia, Anambra, Ebonyi and Enugu states, with the aim of reducing energy costs, attracting investments and creating employment opportunities.
Speaking at the event, GasSync representative, Callistus Mba, said procurement activities had commenced, while funding arrangements were progressing towards financial close ahead of the planned construction.
He explained that the company intended to begin construction at Ohaji in Imo State and Onitsha in Anambra State simultaneously to accelerate delivery and ensure that other parts of the region were not left waiting for gas supply.
According to Mba, the proposed network will extend towards Owerri, Aba, Enugu and Ebonyi, connecting industries, power-generation facilities and agro-processing businesses to a more reliable gas supply.
The project has identified approximately 150 prospective customers across the region, with estimated demand of 254 million standard cubic feet of gas per day.
Mba said the pipeline would reduce dependence on transporting compressed natural gas and liquefied natural gas by road, providing industries with an alternative means of accessing energy for production.
He disclosed that discussions were ongoing with prospective customers, including Geometric Power in Abia State, while the project was expected to support industrial revival and the development of new manufacturing and agro-processing facilities.
The Federal Government, through the South East Development Commission (SEDC), is supporting the initiative as part of efforts to promote regional industrialisation.
President Bola Tinubu, represented by Deputy Speaker of the House of Representatives, Benjamin Kalu, described the project as a strategic investment that could strengthen manufacturing, expand commercial activities and attract private capital to the region.
Tinubu said the pipeline was intended not only to serve existing factories but also to encourage the establishment of new industries and industrial parks that had been constrained by unreliable energy supply.
He disclosed that the SEDC had committed $3 million towards the project and was working to mobilise additional investments from state governments, institutions and private investors.
SEDC Managing Director and Chief Executive Officer, Mark Okoye, said the commission had completed technical, financial and legal due diligence before approving its initial investment. He added that the commission was targeting regional investment participation of up to $30 million as part of efforts to attract the capital required for the project.
Enugu State Governor, Peter Mbah, welcomed the initiative, describing it as an important step towards establishing a common market and coordinated industrial economy in the South-East.
Mbah assured the commission and its partners that the five state governments would support the project by accelerating right-of-way arrangements and environmental impact assessment approvals.
Other state representatives also pledged cooperation, with Anambra State Deputy Governor Onyekachukwu Ibezim urging communities along the pipeline route to support its implementation.
Ebonyi State Deputy Governor Patricia Obila said improved energy access could help revive struggling industries, while Imo State Deputy Governor Chinyere Ekomaru highlighted the state’s natural gas resources and the potential benefits for local businesses.
The project is expected to depend on timely regulatory approvals, funding arrangements, environmental clearances and cooperation with host communities to meet its proposed construction and delivery schedule.
If completed as planned, the regional gas network could provide industries across the five South-East states with improved access to energy, supporting manufacturing, investment and employment generation.
