Nigeria's Gas Opportunity Faces New Test as Global Demand Surges

Nigeria's position in the global gas market is under renewed scrutiny as record worldwide demand and geopolitical disruptions reshape the economics of energy security.

Global natural gas demand climbed to an all-time high of 4,202 billion cubic meters (bcm) in 2025, up 1.7 percent from a year earlier, while global LNG trade rose to a record 580 bcm, according to the Global Gas Report 2026 published by the International Gas Union (IGU) and Snam, with analysis from Rystad Energy.

Nigeria exported 20 bcm of LNG in 2025, placing it among the world's significant LNG suppliers, although well behind the United States, Qatar, Australia, and Russia. The report puts US LNG exports at 150 bcm, Qatar at 111 bcm, and Australia at 109 bcm.

The global gas system entered 2026 from a position of relative strength after years of investment in LNG capacity, storage, and supply diversification. However, the disruption in the Strait of Hormuz constrained about 20 percent of global LNG supply, equivalent to roughly 3 per cent of total global gas supply.

The shock has been felt particularly heavily in price-sensitive emerging markets in Asia and Africa. Global LNG trade fell four percent year-on-year to 284 bcm during January-June 2026, with the report attributing the decline largely to the disruption.