Nigeria LNG Limited (NLNG) is increasingly relying on third-party gas suppliers to keep its production afloat, following a steep decline in feed gas from its International Oil Company (IOC) shareholders.
The company’s General Manager of Production disclosed this shift during a session at the Gastech Exhibition and Conference in Milan, Italy, themed “Resilience in the Face of Operational Challenges – The NLNG Story.”
He explained that IOC divestments from onshore to deepwater assets had disrupted traditional supply arrangements, forcing NLNG to diversify sourcing. “We achieved record output in 2019 with 316 LNG cargoes, but subsequent divestments by IOCs, including Eni’s transfer of assets to Oando, constrained supply and triggered a strategic rethink,” he said.
Today, roughly 75% of NLNG’s feed gas is sourced from independent suppliers under new Gas Supply Agreements. A second tranche of contracts is expected to commence by October, with output projected to stabilize between late 2026 and early 2027.
Despite operating six trains with a nameplate capacity of 22 million tonnes per annum (MTPA), NLNG has averaged just 60% plant utilization over the last three years due to feedstock shortfalls. Train 7, still under construction, is set to expand output by over 30%, but securing reliable gas supply remains the critical challenge.
The executive stressed the broader implications of Nigeria’s gas dilemma, noting that 60% of Africa’s population still lacks access to affordable energy despite abundant reserves. He urged investment in offshore exploration and infrastructure to unlock Nigeria’s untapped gas wealth. “Energy availability transforms economies. With government incentives now in place, Africa should be seen as a viable investment destination,” he added.
Nigeria’s gas supply to NLNG has consistently underperformed in recent years, with Renaissance Africa Energy, one of its key suppliers struggling under the weight of aging infrastructure and underinvestment.
At the 2025 NAICE conference, however, Renaissance announced it had, for the first time in five years, met its contractual obligations to NLNG, following a 40% surge in crude output within four months. The company has since outlined plans to double gas supply to 300 million standard cubic feet per day (scf/d) and invest $15 billion in infrastructure and asset rehabilitation.
With NLNG dependent on diversified supply channels, the success of these investments, alongside government incentives for offshore development, will be critical in sustaining Nigeria’s gas exports and reinforcing the country’s role in the global LNG market.
