Nigeria Risks Losing LNG Relevance as Share Slips Below 5%

Nigeria's position in the global liquefied natural gas market is under threat due to its declining share from six per cent to five per cent, and further risks of falling to as low as two per cent if urgent action is not taken. According to NLNG Managing Director and CEO, Mr. Adeleye Falade, the decline reflects slow capacity growth compared to global competitors who are moving faster to monetise their gas reserves.

The country currently has 215.19 trillion cubic feet (TCF) of proven gas reserves but only a processing capacity of 22 million tons per annum (MTPA). In contrast, Australia has a proven reserve of about 120 TCF with a processing capacity of around 88 MTPA.

NLNG is taking steps to address the feedstock supply challenge and low processing capacity by starting Train 7, which will increase total LNG capacity by 35 per cent from 22 MTPA to 30 MTPA. The company has also begun exploratory work on Trains 8, 9 and 10.

Falade emphasized the need for Nigeria to scale up its gas production and processing capacity to remain competitive in the global market. He warned that if the country fails to act, it risks losing billions of dollars in potential export earnings and foreign direct investment.