SEDC signs $100m Southeast gas pipeline deal, construction to start in 2027

The South East Development Commission (SEDC) has signed an investment agreement with GasSync, a private promoter, to build a 400-kilometre gas distribution pipeline across the five Southeast states. The deal was sealed on Tuesday at Hotel Presidential in Enugu, at a ceremony tagged the South-East Gas Infrastructure Investment and Project Development event.

The first phase is expected to cost about $100 million. The SEDC is putting in $3 million and hopes to mobilise up to $30 million in regional investment participation, its managing director, Mark Okoye, said. He added that the commission carried out technical, financial and legal checks before committing the money, with approval from its governing board.

For ordinary Nigerians in the region, the promise is cheaper, steadier energy for factories — and jobs that follow. The pipeline is designed to carry gas to industrial and commercial centres in Enugu, Anambra, Imo, Abia and Ebonyi. About 150 potential customers have been identified, with projected demand of 254 million standard cubic feet of gas per day.

What the project promises

GasSync's Callistus Mba said the network will start from the Ohaji area of Imo State, run through Owerri, then branch towards Aba in Abia and Onitsha in Anambra, with extensions to Enugu and Ebonyi. He said the aim is to cut the costly habit of moving compressed natural gas (CNG) and liquefied natural gas (LNG) by road.

Mba said construction will begin at Ohaji and Onitsha at the same time, after Enugu Governor Peter Mbah raised concerns that building the whole line from Imo first could delay gas supply to other states. The company plans to start construction in the first quarter of 2027 and deliver first gas in the second quarter of 2028, subject to approvals.

Engagement is already under way with some industrial users, including Geometric Power in Abia, Mba said. He listed regulatory approvals, right of way, community engagement and coordination between federal and state authorities as the main risks to the timeline.

President Bola Tinubu, represented by Deputy Speaker of the House of Representatives Benjamin Kalu, said the project should serve industries across state lines. "Let the gas beneath our soil power our industries," he said, urging the commission to report clear milestones and progress.

Governor Mbah thanked Tinubu for establishing the SEDC and said the agreement marked the start of investment. He promised that Southeast governors would speed up right-of-way arrangements and environmental impact assessment approvals.

Other states sent their deputies. Imo's Chinyere Ekomaru, standing in for Governor Hope Uzodimma, said Imo's gas reserves put the state in a strong position, and urged voters to weigh federal infrastructure spending ahead of the 2027 elections. Anambra's Onyekachukwu Ibezim said the commission would be judged by its impact on people. Ebonyi's Patricia Obila said reliable energy could bring moribund companies back to life.

What happens next

Procurement has started and funding talks are moving towards financial close, according to GasSync. Construction is targeted for early 2027, with first gas expected in 2028 — if permits, land access and community agreements fall into place.