KEY POINTS
- NNPC says Nigeria is attracting more LNG buyers due to strategic location and large gas reserves
- Company plans additional LNG trains and a 12 mtpa project to expand export capacity
- Global supply disruptions boost demand as Nigeria rebuilds exports after earlier pipeline sabotage
The Nigerian National Petroleum Company, NNPC, has said Nigeria is witnessing increased demand for its liquefied natural gas cargoes, as global energy disruptions create new commercial opportunities. The disclosure was made by NNPC Executive Vice President, Olalekan Ogunleye, during the CERAWeek energy conference in Houston.
According to Ogunleye, buyers are increasingly turning to Nigeria because of its strategic location close to major consuming markets and the scale of its gas reserves. He noted that demand for natural gas remains resilient despite geopolitical tensions, adding that Nigeria is well positioned to benefit from shifting global supply dynamics. He explained that Nigeria is about 10 sailing days from Europe and also close to the Atlantic Basin and Asian markets, making it attractive to LNG buyers seeking reliable alternatives.
The NNPC also revealed plans to expand LNG capacity, including discussions to add two new production trains. The company is additionally pursuing a 12 million metric tons per annum LNG project and developing gas-based industrial hubs to tap more than 200 trillion cubic feet of gas reserves.
Nigeria LNG, where NNPC is the largest shareholder, currently exports up to 22 million metric tons annually and is constructing a seventh production train expected to be completed in 2027.
Global tensions drive diversification while Nigeria rebuilds export momentum
Industry experts said geopolitical tensions in the Middle East have increased the need for buyers to diversify supply sources, creating opportunities for African producers. Analysts noted that countries with discovered gas resources but limited market access could benefit from growing interest in new LNG supply, including floating LNG solutions.
Nigeria’s LNG exports had previously declined by about 20 percent due to pipeline vandalism and sabotage in the Niger Delta, which disrupted gas supply to export facilities. However, shipments from the Nigeria LNG complex rebounded in 2024 as supply conditions improved.
Separately, NNPC leadership also indicated that Nigeria could increase crude oil production by about 100,000 barrels per day in the coming months. The country averaged between 1.6 million and 1.7 million barrels per day last year and is targeting an average production of 1.8 million barrels per day in 2026 as capacity improves.
