Global gas pricing trends are creating new opportunities for gas-producing nations, with Nigeria emerging as a key potential beneficiary. However, industry experts warn that the country’s ability to fully capitalise on the moment is being slowed by long-standing underinvestment across its gas value chain.
The immediate past Managing Director of Nigeria LNG Limited, Philip Mshelbila, described the current global pricing environment as a turning point for Africa’s energy future. Speaking at an energy forum in Paris, he noted that geopolitical tensions in the Middle East have disrupted global supply flows, tightening markets and pushing up gas prices.
According to him, this shift presents Nigeria with a strategic opportunity to grow its revenue from gas exports. However, he stressed that Africa is still underperforming despite its vast reserves, which span countries like Nigeria, Algeria, Egypt, Libya, and Mozambique. Nigeria alone holds an estimated 209 to 600 trillion cubic feet of gas reserves, yet production remains far below potential.
Mshelbila, who now serves as Secretary General of the Gas Exporting Countries Forum, warned that Africa is producing only about 40% of its potential output. He added that without urgent investment, the continent risks losing market share to more aggressive producers such as the United States and Canada, especially as global LNG demand remains strong.
Nigeria’s major response to this challenge is the Nigeria LNG Train 7 project, a $10 billion expansion initiative aimed at increasing production capacity from 22 million tonnes per annum to over 30 mtpa. The project, supported by NNPC Limited, Shell, TotalEnergies, and Eni, is part of the government’s “Decade of Gas” strategy targeting 10 billion standard cubic feet of gas production daily by 2030.
Despite these plans, analysts warn that investment delays, cautious funding decisions, and global uncertainty are slowing progress. While demand for gas continues to rise—driven by industrial growth, data infrastructure, and artificial intelligence—stakeholders caution that without faster investment and stronger policy alignment, Nigeria may miss a critical opportunity in the evolving global energy market.
source: Leadership