NLNG Expansion Plans Halted by 15% Gas Supply Shortage
Nigeria LNG (NLNG) is facing a shortage of gas that's holding back its expansion plans, according to Managing Director Adeleye Falade. The company operates six liquefaction trains at between 82% and 83% capacity utilization rates.
The NLNG has been under force majeure since 2022 due to widespread flooding that disrupted gas supply. To lift the measure, the company needs to reach a 90% utilization rate. Falade estimates that the remaining supply gap is about 15%, which the company must close to meet its production targets.
The NLNG plans to expand its liquefaction capacity by bringing its seventh train into service by the end of 2027 as part of the $10 billion Train 7 project. This expansion will increase the Bonny Island plant's capacity from 22 million to 30 million tons per year, but securing more gas is a major constraint.
Falade said that NLNG is working with relevant stakeholders, including the government, to secure additional gas supply and meet its contractual obligations to customers. Disruptions in the global LNG market are creating opportunities for suppliers that can provide reliable volumes.