Nigeria is experiencing rising demand for its liquefied natural gas (LNG) cargoes as disruptions from the Middle East conflict create new commercial opportunities for the West African producer.
- Demand for Nigerian LNG cargoes is rising due to supply disruptions caused by the Middle East conflict.
- Nigeria’s proximity to major markets and its vast gas reserves make it an attractive alternative for buyers.
- Nigeria LNG (NLNG) currently exports up to 22 million metric tons per year and is building a seventh production train to expand capacity by 2027.
- NNPC is discussing further expansion with two new LNG trains and a 12 mtpa LNG project to leverage Nigeria’s large gas reserves.
Buyers are increasingly turning to Nigeria due to its proximity to major consuming markets and the scale of its gas reserves, according to NNPC Executive Vice President Olalekan Ogunleye.
Nigeria LNG (NLNG), in which NNPC is the largest shareholder, has an export capacity of up to 22 million metric tons per year and is currently building a seventh production train expected to be completed in 2027, Reuters reported.
“We are right in the middle of the market. We are 10 sailing days from Europe, close to the Atlantic Basin and close to Asia,” Ogunleye said. “We see commercial opportunities, especially given that we have the largest gas reserves in Africa.”
Ogunleye noted that global demand for natural gas remains resilient and is unlikely to be derailed by ongoing geopolitical tensions.
He added that NNPC has begun discussions on adding two new LNG trains and is also advancing a 12 million metric tons per annum (mtpa) LNG project, alongside gas-based industrial hubs, to unlock more than 200 trillion cubic feet of reserves in Nigeria.
Global Shift Drives Interest in African Gas
Martin Houston, an LNG developer and consultant, said the U.S.-Israeli conflict with Iran has intensified the need for buyers to diversify supply sources.
He noted that countries in Africa and South America with proven gas reserves but limited market access could benefit from the growing interest in new LNG supply, including floating LNG solutions.
This trend is already playing out across Africa. Business Insider Africa earlier reported that Italy is seeking to increase gas imports from Algeria—Africa’s largest gas producer and exporter—after both countries agreed to deepen energy cooperation.
Spain is also considering boosting pipeline imports from Algeria as it looks to shore up supplies amid rising prices driven by the war in the Middle East.
