Nigeria LNG Faces 80% Drop in Gas Supplies Due to Vandalism

AFRICAN BUSINESS AND ECONOMYMarch 4, 2025 at 9:56 AM UTC

TLDR

Nigeria LNG Ltd. is facing an 80% reduction in gas supplies, with only two of its six processing units currently operational
The reduced LNG output is a significant blow to Nigeria’s economy, as natural gas exports form a major part of the country’s foreign earnings
The disruption comes as Europe’s demand for LNG is soaring due to a reduction in Russian gas supplies

Nigeria LNG Ltd. is facing an 80% reduction in gas supplies, with only two of its six processing units currently operational. Vandalism and sabotage have disrupted the plant’s gas pipelines, halting the production of liquefied natural gas (LNG) and affecting exports.

The reduced LNG output is a significant blow to Nigeria’s economy, as natural gas exports form a major part of the country’s foreign earnings. The supply shortfall is expected to impact the government’s budget revenues and delay scheduled shipments. Some shipments are expected to be delayed by up to 10 days next month.

The disruption comes as Europe’s demand for LNG is soaring due to a reduction in Russian gas supplies. This has increased pressure on Nigeria LNG, which exports a significant portion of its gas to Europe. In response, Nigeria LNG has declared force majeure and is working with government security agencies to improve safety and reliability at upstream production and transmission sites.

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Key Takeaways

The recent outage at Nigeria LNG underscores the ongoing security challenges affecting gas exports from the country. With gas supplies down by 80%, and Europe relying heavily on LNG imports, any further disruptions could lead to higher energy prices globally. The rising frequency of sabotage and vandalism highlights vulnerabilities in Nigeria’s energy infrastructure, making it critical for the government and industry players to invest in better security and maintenance to prevent further setbacks. The supply constraints also underline the growing importance of African LNG exports in global energy markets, particularly as Europe seeks alternatives to Russian gas.

Nigeria

Energy

LNG

Gas Exports

Oil & Gas

Economy