$1 Trillion Gas-by-Rail Project Targets Africa-Wide Gas Supply Expansion

By Naija Enquirer Staff

Nigeria and Ethiopia have launched an ambitious continental gas infrastructure initiative aimed at expanding access to natural gas across Africa, as the region continues to grapple with chronic energy shortages.

The project, known as the Gas-by-Rail Economic Corridor Initiative (GBR-ECI), was unveiled in Addis Ababa and proposes a vast rail-based energy transport network designed to move liquefied natural gas (LNG) across Sub-Saharan Africa.

Estimated to cost between $500 billion and $1 trillion, the initiative ranks among the most ambitious infrastructure proposals ever advanced on the continent. Its promoters describe it as a private-sector-led solution to Africa’s annual infrastructure financing gap, estimated at between $68 billion and $100 billion.

Rather than relying on traditional cross-border pipelines, the GBR-ECI is structured around a “virtual pipeline” concept, using rail transport to move densified LNG to inland and landlocked markets beyond the reach of pipelines and coastal terminals.

Nigeria’s participation reflects its position as Africa’s largest holder of natural gas reserves and a major LNG exporter. Under the corridor model, gas produced in Nigeria and other producing countries would be liquefied and transported by rail to regions with limited energy infrastructure.

Project sponsors say the approach offers greater flexibility and resilience, especially in areas affected by insecurity, political risks, or weak infrastructure that have historically delayed pipeline development.

The initiative also aligns with continental integration goals under the African Continental Free Trade Area (AfCFTA), with proponents arguing that reduced energy and transport costs could strengthen regional value chains and lower the cost of doing business across borders.

According to estimates presented at the launch, the construction and operation of the corridor could generate more than 70 million jobs by 2050, spanning engineering, manufacturing, logistics, and related services.

The project is promoted by Ethiopia’s Ministry of Transport and Logistics in partnership with Nigeria-based Insight Dynamic Resources. It proposes a 73,500-kilometre rail network connecting up to 40 African countries.

Beyond energy distribution, the initiative is positioned as a response to Africa’s heavy reliance on biomass. About 90 per cent of households in Sub-Saharan Africa still depend on firewood and charcoal for cooking and heating, contributing to deforestation, land degradation, and serious health risks.

Data presented at the launch show that woodfuel consumption exceeds sustainable supply by about 70 per cent in Sudan, 75 per cent in northern Nigeria, and 150 per cent in Ethiopia. Project backers argue that large-scale gas distribution could cut woodfuel use and related emissions by up to 75 per cent.

The corridor is also framed as a platform for industrialisation, with projections suggesting it could underpin economic activity valued at up to $29 trillion over several decades by providing reliable energy and freight transport for manufacturing, mining, and logistics.

Ethiopia is expected to serve as a central hub through an “Ethio-Cluster” of energy and heavy industry, including plans for green hydrogen production, green iron processing, and up to five million tonnes of green steel output annually by 2030.

The proposal includes partnerships with Germany’s SMS Group for rail-track manufacturing and Siemens Mobility for signaling, monitoring, and digital network optimization.

Project documents outline operational requirements for over 5,100 heavy-haul locomotives, more than 80,000 specialised LNG tank units, and about 100,000 wagons and coaches.

Speaking at the launch, Ethiopia’s State Minister of Transport and Logistics, Bareo Hassen, said private investment would be critical to closing the country’s infrastructure gap, noting that only 902 kilometres of Ethiopia’s planned 5,000-kilometre rail network are currently operational.

While acknowledging the scale and execution risks of the project, its promoters argue that Africa’s development challenges demand equally bold and integrated solutions.

By combining clean energy distribution, rail infrastructure, and industrial development, the Gas-by-Rail initiative aims to reduce Africa’s dependence on biomass, strengthen energy security, and support long-term economic transformation.