Nigeria LNG Market Share Slips to 5%, Risking Global Relevance

Nigeria risks losing its position as a major player in the global liquefied natural gas (LNG) market, with its share slipping from six percent to five percent. According to NLNG Managing Director and Chief Executive Officer, Mr. Adeleye Falade, if urgent action is not taken, Nigeria's market share could fall to two percent.

Currently, Nigeria has 215.19 trillion cubic feet (TCF) of proven gas reserves and an additional 600 TCF yet to be proven. However, its liquefaction capacity remains at just 22 million tons per annum (MTPA), compared to other countries like Australia which has a proven reserve of about 120 TCF but has a processing capacity of about 88 MTPA.

NLNG is currently working on Train 7, which will increase total LNG capacity by 35 percent from 22 MTPA to 30 MTPA. The company also plans to start exploratory work on Trains 8, 9 and 10 in line with its continuous expansion drive.

Falade emphasized that a major bottleneck for NLNG's expansion agenda is feedstock supply shortfall, particularly with Shell and Eni divesting from onshore assets. He warned that if shortages persist, NLNG might be forced to 'rethink our model', similar to Dangote Refinery's move towards vertical integration.