Nigeria LNG's USD 10 Bn Train 7 Expansion Halted by Gas Supply Constraint

Nigeria LNG Ltd.'s (NLNG) Train 7 expansion project, valued at USD 10 billion, aims to increase liquefied natural gas (LNG) production capacity from 22 million tonnes per year to 30 million tonnes per year. However, the company faces a persistent challenge: insufficient natural gas supply.

Currently, NLNG's six existing trains operate at around 82%, 83% of their capacity, with an estimated 15% gas supply gap that needs to be closed to achieve higher utilization. The company is working with the Nigerian government and other stakeholders to increase the flow of natural gas to the plant.

The Train 7 project has experienced delays due to disruptions associated with the COVID-19 pandemic and the war in Ukraine, but NLNG plans to bring its seventh liquefaction train into operation by the end of 2027. Once completed, the expanded facility is expected to raise the Bonny Island complex's LNG production capacity by roughly 8 million tonnes annually.