Nigeria’s LNG Output Plummets as Gas Supply Drops by 80%

Nigeria – Nigeria’s liquefied natural gas (LNG) production has taken a severe hit due to widespread pipeline vandalism, with gas supply to Nigeria LNG Ltd. (NLNG) now at just 20% of the plant’s requirement, sources familiar with the matter have revealed.

NLNG CEO Philip Mshelbila confirmed last week that only two of the facility’s six processing units are currently operational. He also noted that three critical gas pipelines remain offline, further restricting output.

Impact on Global LNG Market

This sharp decline in LNG exports could tighten global supply and push up spot prices in Asia and Europe. In 2024, nearly half of Nigeria’s LNG shipments went to Asia, while about a third was sent to Europe, according to Bloomberg data.

“With the supply shortage from Nigeria, buyers may need to turn to alternative sources, which could push prices higher,” an LNG market expert stated.

There are also concerns that prolonged disruptions could damage Nigeria’s long-term reputation as a reliable LNG supplier.

“Countries depending on Nigeria’s LNG might look for more stable suppliers, and that could hurt the country’s future contracts,” an analyst warned.

Production Challenges and Government Response

Nigeria’s LNG exports fell by 40% in February compared to the previous month, Bloomberg data shows. The key issue remains pipeline vandalism and operational setbacks.

Shell Plc, one of NLNG’s major shareholders alongside NNPC, TotalEnergies, and Eni, has yet to comment on the situation.

Nigeria’s oil and gas sector has long struggled with pipeline sabotage, oil theft, and inadequate infrastructure, affecting both domestic supply and export revenues.

The government has vowed to intensify security measures around critical infrastructure, but persistent attacks continue to threaten production.

If these challenges remain unaddressed, Nigeria risks losing even more revenue from LNG exports, which are crucial to the country’s foreign exchange earnings.

Damilola Adeleke

Adeleke Damilola (ACTION) is a versatile content writer with expertise in news writing and a seasoned media professional and broadcast specialist. Currently serving as News Editor for DNews Info, Damilola is also the CEO of the ACTION brand, committed to shaping lives and establishing a legacy of excellence for present and future generations.