Nigeria Eyes New Gas Strategies to Boost LNG Output, Regain Global Ground.
There are fresh moves by Nigeria to reposition itself in the booming global gas market, as the country looks to shake off production setbacks and ramp up its liquefied natural gas (LNG) output in the coming years. This comes as Africa is tipped to play a much bigger role on the world energy stage, with LNG capacity across the continent expected to see massive growth by 2030.
A new report by Rystad Energy reveals that global LNG capacity is projected to leap from 486 million tonnes per annum (Mtpa) in 2023 to 755 Mtpa by 2030. Of this, Africa is expected to contribute a solid 93 Mtpa, nearly 20 percent of the world’s pipeline capacity. And Nigeria, as West Africa’s LNG heavyweight, is looking to lead the charge.
But to get there, Nigeria may have to change the game. The country is now exploring innovative solutions such as floating LNG (FLNG) facilities and mini-LNG projects. These flexible approaches are being considered to help tap into Nigeria’s vast but underutilized gas reserves, while also bypassing the persistent challenges that plague onshore infrastructure, including vandalism, theft, and outdated systems.
Currently, West Africa holds a treasure trove of untapped offshore gas resources, which makes it ripe for FLNG investments. Nigeria, already producing about two-thirds of West Africa’s LNG, stands at the centre of this push. However, the country has faced serious setbacks in recent years. Production rates have dropped sharply from about 90 percent efficiency in 2018 to just 60 percent in 2023, largely due to pipeline attacks and operational disruptions.
Despite these challenges, the potential is enormous. Africa already has the highest concentration of FLNG infrastructure globally. With countries like Nigeria and Gabon ramping up new liquefaction projects, West Africa’s LNG capacity could grow to over 50 Mtpa by 2035.
Nigeria has long been regarded as a major LNG player, even though it doesn’t produce as much as global giants such as the US, Australia, or Qatar. One of its strengths, however, is geography. Nigerian LNG is strategically placed, closer to key markets in Europe and Asia compared to American exports, and is not affected by the ongoing US-China trade tensions. This gives it a competitive edge, especially with buyers looking for reliability and quicker delivery times.
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Still, the threats of pipeline vandalism and oil theft loom large. These issues have not only affected local production but have also dented Nigeria’s standing in the global LNG space. Rystad Energy’s analysis shows that declining output from Nigeria has had a knock-on effect on West Africa’s overall export volumes in recent years.
Yet hope remains. New projects are in the works, both onshore and offshore. Many believe that if Nigeria can fix its internal challenges, it could reclaim its place as a major force in the global LNG market. With over 16 billion barrels of oil equivalent in undeveloped offshore gas waiting to be tapped, the future of Nigerian gas, and by extension West African LNG, may lie offshore, floating on the next big wave of energy innovation.
