NLNG Gas Supply Shortage Hits 15%, Expansion Plans Halted

Nigeria LNG (NLNG) is facing a shortage of gas supply that's hindering its production capacity, despite plans to expand its liquefied natural gas export capacity. According to NLNG Managing Director Adeleye Falade, the company currently operates six liquefaction trains with utilization rates between 82% and 83%, but needs more gas to reach its target.

The shortage comes as NLNG is investing $10 billion in an expansion project that will increase the capacity of the Bonny Island plant from 22 million to 30 million tons per year. However, Falade estimates the remaining supply gap at about 15% and states that 'operationally we are able to do that, but our biggest constraint is gas supply.'

Falade emphasizes that NLNG is working with relevant parties, including the government, to secure more gas supply. The company has also faced disruptions in the global LNG market, which have created opportunities for suppliers that can provide reliable volumes.