Nigeria LNG Limited (NLNG) is looking beyond its recent revenue dip as the gas giant prepares for what could be a major expansion of Nigeria’s position in the global liquefied natural gas market. The company recorded $5.87 billion in revenue in 2025, slightly lower than the $5.97 billion recorded in 2024, but increased its capital investment to $1.09 billion as it pushes ahead with new projects and long-term growth plans.
At the centre of that strategy is the $4.3 billion Train 7 project, which is currently under construction and expected to begin operations in 2027. Once completed, Train 7 is projected to increase NLNG’s production capacity from 22 million tonnes per annum to 30 million tonnes per annum. The company believes the expansion could give it greater room to compete internationally while taking advantage of rising demand for natural gas.
However, NLNG’s growth ambitions come against the backdrop of years of challenges in Nigeria’s oil and gas industry. Crude oil theft, pipeline vandalism, underinvestment and disruptions to domestic gas production have affected the steady supply of feedgas to the company’s Bonny Island facility. NLNG declared force majeure in October 2022 after severe flooding disrupted gas production, and CEO Adeleke Falade said the declaration remains in place because the company has yet to see enough stability in gas supplies to confidently lift it.
To reduce the risk of future shortages, NLNG is changing the way it sources gas. The company signed long-term agreements with six third-party suppliers last year, helping reduce its dependence on gas from companies affiliated with its shareholders. According to Falade, between 70% and 75% of NLNG’s current feedgas now comes from outside those affiliated suppliers. The company is also looking at additional producers and wants to secure enough supply capacity to ensure that disruptions from one supplier do not bring the entire operation to a standstill.
NLNG is also looking beyond Train 7, with early discussions already beginning around possible Train 8, Train 9 and Train 10 developments. The company is positioning itself to benefit from changing global energy flows, including Europe’s search for alternative gas supplies and continued demand from Asia. With natural gas expected to remain important during the global energy transition, NLNG sees a window of opportunity—but turning that opportunity into lasting growth will depend heavily on Nigeria’s ability to increase investment, improve gas infrastructure and maintain reliable feedgas supplies.
source: Theafricareport
