Nigeria's NLNG Faces Gas Supply Crisis Amid LNG Expansion Plans

Nigeria's liquefied natural gas (LNG) company, NLNG, has been one of the country's most successful energy investments over nearly four decades. With cumulative revenue of nearly $150 billion, it has significantly curbed gas flaring and expanded access to cooking gas for millions of households.

The company's biggest challenge is securing enough gas to keep its existing facilities running at optimal capacity, according to its Managing Director and CEO, Mr. Adeleye Falade. NLNG currently faces a force majeure due to persistent gas supply disruptions, which have averaged around 60% plant utilisation over the past two years.

To address this issue, the company is prioritising the completion of the Train 7 expansion project, which will increase LNG production capacity by about 35% and LPG production by roughly 50%. This additional supply should improve market availability and moderate price volatility in the cooking gas market.