Energy
Nigeria Faces Mixed LNG Demand Outlook As NLNG Sustains Growth
Though the Nigeria LNG (NLNG) is focused on its capacity expansion plans, tilting towards bringing on-stream its Train-7, mixed projections on the global demand side are raising serious business development concerns.
Recent reports indicate that the NLNG’s Train 7 project is a significant investment, with a total cost of $10 billion, which is highly significant because Russia’s gas cuts have left the European Union (EU) looking to Nigeria as an alternative to augment its gas needs.
The Deputy Director-General of the European Commission’s Department of Energy, Matthew Baldwin, said Friday, “Europe is in a tight spot in relation to gas following the Russian invasion of Ukraine and instability in our gas market, the threat perhaps to cut off supply altogether.”
Baldwin, who visited Abuja, said the EU is looking to increase Liquefied Natural Gas (LNG) imports from Nigeria above current levels.
Nigeria currently supplies 14 per cent of the EU’s gas imports, while 60 per cent of Nigeria’s LNG shipments go to Europe, he said. “We want to expand what is currently at 14 per cent share of total LNG imports from Nigeria. We want that to go up,” he said.
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Baldwin said that the gas relationship between Nigeria and the EU has extraordinary potential, with the latter determined to deliver on it.
The NLNG is also actively participating in the 2026 International LNG Conference in Qatar, where the company is expected to highlight its commitment plans and growth strategies.
While it has been projected that Nigeria’s revenue from the export of liquefied natural gas (LNG) will get a major boost in 2026 as global output is set to jump, another interesting conversation is puncturing this hope.
It was projected that a boost in global supply will ease constraints seen since the 2022 Ukraine war, which dampened prices, and could spur demand, including from top importers China and India, analysts say.
This year marks the start of a large wave of supply that analysts expect to last until 2029, depressing prices and potentially driving more demand from emerging economies.
“2026 is expected to be a transitional year for the LNG market,” said Kpler in a report quoted by Reuters. “The market is expected to move away from tightness toward ample availability, with sufficient supply even as winter demand and storage needs emerge, particularly in Europe.”
Nigeria’s LNG exports saw a significant rebound in late 2025, hitting a five-year high in December at 2.1 billion cubic meters, driven by improved gas supply and plant utilisation, according to statistics from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The development positions Nigeria for a major surge in gas exports as new facilities, such as Nigeria LNG Train 7, come online, boosting its role as a key African supplier despite earlier challenges with theft and infrastructure.
In a new development, there are fresh concerns that as several countries invest in expanding their LNG production and export capacity, and significant quantities of the gas are expected to come online in 2026 after a record 2025, supply could soon outpace demand.
This begs the question: just how much LNG is needed to “fill the gap” as the world develops its renewable energy capacity?
Last year was a record year for LNG trade, as exports exceeded the quantities predicted in several industry forecasts.
The expansion of the world’s LNG trade has been led by the United States, which exported over 100 million metric tonnes of LNG in 2025. This was driven by several new plants coming online across the country.
The U.S. exported an estimated 111 million metric tonnes (mmt) of LNG in 2025, 23 mmt more than the previous year and far higher than Qatar’s 20 mmt, the world’s second-largest exporter, according to the data analysis firm LSEG.
LNG shipments from the U.S. contributed roughly 25 per cent of global LNG exports in 2025. The new Plaquemines facility, operated by Venture Global, the country’s second-largest export facility, shipped a reported 16.4 mmt of LNG last year after commencing operations in December 2024. Several other U.S. facilities also increased their deliveries last year following several years of investment. In December, the U.S. set a record monthly LNG export figure of 11.5 mmt.
The head of business intelligence at shipping firm Poten and Partners, Jason Feer, stated, “It is remarkable that in nine years the U.S. has gone from zero LNG exports to over 100 mmt, and the success validates the U.S. approach of selling free on board and pulling gas off the grid and the reliability of U.S. supplies.”
As the U.S. ramped up its LNG production and export capacity, there were fears of a glut. However, as the U.S. and Europe introduced sanctions on Russia following Moscow’s invasion of Ukraine in 2022, several European countries were forced to search for alternative gas suppliers, a role that the United States was well-prepared to take on.
Europe purchased 9 mmt of LNG from the U.S. in December alone, further reducing its imports from Russia.
While Europe still requires LNG, there are fears of the region’s growing overdependence on the United States, which could provide up to 80 per cent of its LNG imports by 2030.
On the other hand, as Europe ramps up its renewable energy capacity, fears of an LNG glut in 2026 and beyond are resurfacing.
The U.S. Plaquemines facility is expected to reach its full production capacity this year. Meanwhile, Cheniere’s smaller modular plants will reach full capacity or may even be expanded. QatarEnergy and ExxonMobil’s Golden Pass LNG is also expected to start production this year.
Together, U.S. LNG projects could increase the country’s annual LNG production by another 20 mmt, according to estimates.
Energy
N4bn Compensation Dispute Threatens Ikot Abasi Power Project
Nearly 20 years after the Federal Government awarded the contract for the 330kV Ikot Abasi Transmission Line, the Niger Delta Power Holding Company Limited (NDPHC) has turned to the Akwa Ibom State Government to break a N4 billion compensation deadlock threatening the completion of the strategic power project.
The transmission project, awarded in 2006 under the National Integrated Power Projects (NIPP), has remained stalled primarily over unresolved community and wayleave compensation issues.
But, to ensure the completion of the project, NDPHC Managing Director/Chief Executive Officer, Jennifer Adighije, is now seeking the intervention of Akwa Ibom State Governor, Pastor Umo Eno, to clear the outstanding issues and enable the contractor, Anit Energy, to return to site.
Adighije made the appeal during a courtesy visit to the Governor in Uyo, Akwa Ibom State.
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She disclosed that the latest valuation of the outstanding wayleave obligations was slightly below N4 billion.
The NDPHC boss said the prolonged delay was particularly concerning because the contractor had reportedly completed about 90 per cent of the engineering, procurement and construction procurement for the project.
She added that substantial project materials, including conductors and tower members worth millions of dollars, had already been deployed along the project corridor between Adiasim and Ikot Ekpene, but were still lying across communities as the impasse persists.
“We are therefore pleading for your kind intervention as a shareholder and board member of the company,” Adighije told the governor.
According to her, resolving the outstanding community issues would allow the contractor to remobilise to site and bring the long-delayed project to completion.
NDPHC is now targeting May 29, 2027, for commissioning of the transmission line, subject to the successful resolution of the outstanding compensation and community challenges.
Adighije said NDPHC was keen to support the state’s development ambitions through its role as a major interventionist agency in Nigeria’s electricity sector.
“We want to be part of your ARISE Agenda,” she said, referring to the governor’s development programme.
She also welcomed the establishment of the Akwa Ibom State Electricity Regulatory Commission, saying NDPHC had commenced discussions with the commission on the development of appropriate electricity-market frameworks for the state.
According to her, officials of the commission had visited NDPHC and requested information on the company’s projects in Akwa Ibom, while a joint working group was being established to examine how the assets could be better utilised and electricity access extended to underserved communities.
Also speaking, NDPHC Executive Director, Strategy and Commercial, Mr. Patrick Obahiagbon, commended the Governor’s administration for its development initiatives across the state.
Responding, Governor Eno welcomed the NDPHC initiative and pledged to take the Ikot Abasi project before the State Executive Council for consideration. The governor said the state government would examine the outstanding issues and determine how it could intervene to facilitate the completion of the project.
Energy
Nigeria-Libya Gas Pipeline as FG Eyes New LNG Markets
There are indications that the Nigeria-Libya Gas Pipeline would go from the drawing board to reality, as it has emerged as a major option to help Nigeria break into new markets for her gas reserves.
The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, disclosed this at Gastech 2026 in Bangkok, Thailand, during a high-level engagement with global energy companies, investors and governments on expanding Nigeria’s gas production, infrastructure, domestic utilisation and export markets.
The renewed push for the Nigeria-Libya pipeline topped the agenda for the meeting between Ekpo and Libya’s Minister of Oil and Gas, Dr Khalifa Rajab Abdulsadek.
Under the proposed framework, Nigeria and Libya are expected to explore a Memorandum of Understanding (MoU) and establish a joint technical team to assess the feasibility, financing, infrastructure requirements, security considerations and commercial viability of the project.
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The NNPC Limited is expected to spearhead Nigeria’s participation in the bilateral initiative. If developed, the pipeline would provide another potential route for transporting Nigerian gas through North Africa to European markets, giving Nigeria an additional platform to monetise its gas resources beyond existing LNG channels.
According to Ekpo, the Federal Government was determined to create an investment environment capable of attracting the capital, technology and strategic partnerships required to convert the country’s gas reserves into economic growth, industrial development and jobs.
“Nigeria is open for business. We have put in place the right fiscal policies and operating environment, and the security of investors and their investments is guaranteed,” he said.
He revealed that the NNPC Limited would play a central role in translating Nigeria’s bilateral energy engagements into commercially viable projects, strategic investments and sustainable development.
The minister’s engagements also revealed plans by major industry players to significantly ramp up domestic gas production and infrastructure.
Energy
Gas Industry Must Commercialise Methane – NLNG
Gas producers must stop treating methane reduction as an environmental cost, because methane released into the atmosphere represents lost gas, lost revenue and lost energy that could otherwise be recovered and sold.
The Managing Director and Chief Executive Officer of Nigeria LNG Limited (NLNG) Adeleye Falade, made the declaration during a panel titled “Capturing the Lost Opportunity: Driving Global Alignment on Methane Abatement Across Natural Gas Supply Chains,” at the Gastech 2026 Exhibition and Conference in Bangkok, Thailand.
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Taking from the company’s experience, he highlighted that investments in methane abatement could pay for themselves while improving plant efficiency and asset reliability.
The NLNG CEO said the commercial value of recovering lost gas should become a central part of the global industry’s approach to methane management.
“Every tonne emitted is lost product, lost revenue and lost energy; gas we could have sold. Every molecule of methane avoided is both an emissions reduction and a recovered energy resource.”
According to him, the NLNG’s new boil-off gas compressor and start-up gas recovery project demonstrate the business case for methane reduction, with each project expected to deliver methane reductions of about 10–15 percent while also recording positive projected net present values. “The most compelling business case is the simplest one: the projects that cut our methane also pay for themselves.
“The same discipline that reduces methane also improves asset reliability and plant efficiency. The returns show up in more places than the emissions ledger,” Falade said.
He added that the starting point for methane abatement was credible measurement of gas losses, which enables companies to identify where methane is being lost, channel investment towards the right interventions and independently verify the results.
According to Falade, the NLNG had demonstrated that producers in developing economies could meet globally recognised standards for emissions measurement and reporting, despite infrastructure and other constraints.
He disclosed that the NLNG had achieved Gold Standard recognition under the Oil and Gas Methane Partnership (OGMP) 2.0 and became the first company in Africa to attain Level 5 methane emissions reporting.
Its measurement, reporting and verification system is independently assured by DNV in line with ISO 14064.
The NLNG’s methane-management programme includes site-wide optical gas imaging, a structured Leak Detection and Repair programme, as well as phased deployment of continuous monitoring and real-time emissions dashboards across its plant and vessels.
Falade said methane reduction was also being incorporated into the design of Train 7, which is expected to raise the NLNG’s LNG production capacity from 22 million tonnes per annum to 30 million tonnes.
The commercial case for emissions abatement was not new to Nigeria, he added, pointing to the NLNG’s longstanding role in converting gas that would otherwise have been flared into a marketable product.
According to him, the company’s activities have contributed to reducing Nigeria’s gas-flaring rate from above 65 percent to below 20 percent.
Beyond its own operations, Falade revealed that the NLNG was extending methane-management requirements across its supply chain through its Scope 3 Advocacy Plan.
The company engages feed-gas suppliers and contractors to measure, disclose and reduce emissions, while verified upstream emissions data and emissions-related criteria are incorporated into supplier selection and evaluation.
Falade also called for greater consistency in methane measurement and reporting requirements across jurisdictions, arguing that divergent standards make enforcement uneven and complicate meaningful comparisons between producers.
“The industry does not need weaker standards; it needs stronger, shared ones backed by real measurement,” he said.
On the tension between emissions reduction, energy access and affordability, Falade said developing economies should not be forced to choose between economic development and climate action.
“Developing economies cannot be asked to choose between economic development and emissions reduction. Both must progress together,” he said.
Other panellists were Zubin Bamji of the World Bank, Niels Dijksman of Brunei LNG and Hiroyuki Mori of JOGMEC.
The session was moderated by energy economist Dr Carole Nakhle of Crystol Energy.





