The Federal Government has launched a 400-kilometre gas distribution pipeline project valued at $100 million to boost industrialisation, attract investment and create jobs across the five Southeast states.
The project, initiated through the South East Development Commission (SEDC), will connect gas resources to industrial and commercial centres in Enugu, Anambra, Imo, Abia and Ebonyi states. About 150 potential customers have been identified, with projected gas demand of 254 million standard cubic feet per day.
The investment agreement was signed on Tuesday at the South-East Gas Infrastructure Investment and Project Development Ceremony at Hotel Presidential, Enugu.
President Bola Tinubu, represented by the Deputy Speaker of the House of Representatives, Benjamin Kalu, described the project as a strategic investment that would strengthen manufacturing, promote regional economic integration and unlock new business opportunities.
Tinubu said the pipeline would support manufacturers in Aba, industrial clusters in Nnewi and Onitsha, enterprises in Enugu, and agro-processing and manufacturing activities in Ebonyi, while connecting Imo’s gas resources to the wider regional economy.
He said the project was intended not only to supply existing industries but also to encourage the establishment of new factories, industrial parks and businesses that had been constrained by unreliable energy supply.
The President also urged the SEDC and its partners to ensure transparency, environmental responsibility, community engagement and high safety standards. He called for clear implementation timelines, measurable milestones and regular progress reports.
Tinubu commended the commission for committing $3 million to the project and said it was working to attract additional funding from state governments, institutions and private investors. He also cited the South-East Vision 2050 framework and the approval of the South-East Investment Company as part of efforts to mobilise capital for regional development.
Enugu State Governor Peter Mbah welcomed the initiative, describing the SEDC as an important institution for advancing the region’s industrialisation goals. He said the project could help create jobs for young people and reduce the need for them to leave the Southeast in search of employment.
Mbah also pledged the support of Southeast governors, including efforts to expedite right-of-way arrangements and environmental impact assessment approvals. He said the investment agreement marked the beginning of the investment process.
Deputy governors representing Imo, Anambra and Ebonyi states also expressed support for the project. Imo Deputy Governor Chinyere Ekomaru highlighted the state’s gas resources and potential demand from companies seeking supplies from the Assa North–Ohaji South development. Anambra Deputy Governor Onyekachukwu Ibezim urged communities along the pipeline route to cooperate with the project promoters, while Ebonyi Deputy Governor Patricia Obila said improved energy access could help revive struggling industries.
Permanent Secretary of the Federal Ministry of Regional Development, Mary Ogbe, said the commission’s initiatives were intended to improve living standards across the region and complement the development efforts of state governments. She also encouraged investors to take advantage of emerging opportunities.
SEDC Managing Director and Chief Executive Officer Mark Okoye said the commission had completed technical, financial and legal due diligence before its governing board approved the investment. He added that the commission was targeting up to $30 million in aggregate regional investment participation, including its initial $3 million commitment.
Representing project promoter GasSync, Callistus Mba said the proposed network would originate from the Ohaji area of Imo State, pass through Owerri and branch towards Aba and Onitsha, with extensions to Enugu and Ebonyi. He said the pipeline would reduce reliance on road transportation of compressed natural gas and liquefied natural gas, which can be expensive.
Mba said construction was planned to begin simultaneously at Ohaji and Onitsha to speed up delivery across the region. The company has also begun engaging prospective customers, including manufacturers, power-generation facilities and agro-processing businesses. Geometric Power in Abia State is among the companies with which discussions are underway.
According to Mba, procurement has commenced and funding arrangements are progressing towards financial close, alongside preparations for engineering, procurement and construction. GasSync plans to begin construction in the first quarter of 2027, with the first gas delivery targeted for the second quarter of 2028, subject to the completion of necessary requirements.
He identified regulatory approvals, right-of-way arrangements, community engagement and coordination between federal and state authorities as critical to meeting the timeline. Mba urged governments and host communities to support the process to ensure timely implementation.
