Nigerian LNG emerges as key supplier to energy-hungry Asia and Europe, sidestepping US tariff battles
In a significant development for global energy markets, Nigerian Liquified Natural Gas (NLNG) Limited is intensifying efforts to maintain gas exports abroad despite industry challenges, positioning itself as a crucial revenue generator for Africa’s most populous nation.
Industry experts highlight NLNG’s strategic advantage: positioned beyond the reach of ongoing US tariff disputes, the company offers vital flexibility to Asian and European buyers through shorter shipping routes compared to American exports.
While Nigeria has consistently ranked among the world’s top LNG producers, its export capacity faces persistent threats from pipeline vandalism and oil theft, preventing the nation from fully capitalizing on its vast natural gas resources.
“Despite growing global demand, production issues and vandalism have contributed to Nigeria’s annual liquefaction rates dropping from an average of 90 percent in 2018 to 60 percent last year, demonstrating the extent of the disruptions,” says Antonia Syn, commodity markets analyst at Rystad Energy.
Nevertheless, the future looks promising. West Africa, spearheaded by Nigeria, currently produces nearly half of Africa’s LNG, with Rystad Energy projecting Nigerian exports to surge by 20 million tonnes by 2030. To achieve this growth, analysts suggest Nigeria may need to embrace innovative solutions like floating LNG facilities and mini-LNG projects to overcome infrastructure vulnerabilities.
This expansion is part of Africa’s broader emergence as a gas powerhouse, with the continent set to play a pivotal role as global LNG production capacity skyrockets from 486 million tonnes per annum last year to 755 million tonnes in 2030.
Source: Oriental News
