Nigeria’s position in the global liquefied natural gas (LNG) industry is facing growing pressure, with the country’s market share falling from 6% to 5%, according to the Managing Director and Chief Executive Officer of Nigeria LNG Limited (NLNG), Adeleye Falade. Speaking during the company’s Facts & Figures presentation in Lagos, Falade cautioned that Nigeria could lose even more ground, with its share potentially dropping to 2% if critical issues affecting gas supply and processing capacity are not addressed. The warning highlights mounting concerns over Nigeria’s competitiveness in one of the world’s fastest-growing energy markets.
Falade explained that while global demand for cleaner energy continues to rise, competing nations are expanding their LNG production at a much faster pace than Nigeria. He noted that countries with significantly smaller natural gas reserves have invested heavily in processing infrastructure, allowing them to capture larger portions of the global market. For instance, Australia, with approximately 120 trillion cubic feet (TCF) of proven gas reserves, boasts a processing capacity of about 88 million tonnes per annum (MTPA). Malaysia, despite holding only 97 TCF of gas reserves, also surpasses Nigeria’s processing capacity. Nigeria, by comparison, has an estimated 209 TCF of gas reserves but only 22 MTPA in processing capacity, a gap Falade described as a major obstacle to growth.
The NLNG boss stressed that natural gas remains a crucial part of the world’s energy transition and will continue to play a significant role for decades, even as countries reduce their dependence on more carbon-intensive fuels. Beyond electricity generation, he pointed to gas as a key resource for industries such as fertiliser production, petrochemicals, cosmetics manufacturing, and transportation through compressed natural gas (CNG) vehicles. According to him, Nigeria has a unique opportunity to maximise the value of its abundant gas resources, but that opportunity will not remain open indefinitely as more countries compete for investment and export markets.
To strengthen its position, NLNG is pressing ahead with its Train 7 expansion project while initiating early-stage discussions for Trains 8, 9, and 10. Falade described the expansion plans as part of the company’s long-term growth strategy aimed at increasing production capacity, attracting investment, and ensuring Nigeria remains relevant in the evolving global LNG landscape. However, he acknowledged that persistent feedstock shortages continue to threaten these ambitions. He revealed that the divestment of major international oil companies, including Shell and Eni, from onshore assets has forced NLNG to diversify its gas supply, with nearly 70–75% of its feedstock now sourced from outside its shareholders’ affiliated companies.
Falade warned that unless Nigeria urgently resolves its gas supply challenges and accelerates infrastructure development, competing LNG producers will continue to seize market opportunities that Nigeria is losing. He cautioned that prolonged shortages could even force NLNG to rethink its current operating model. His remarks serve as a strong reminder that while Nigeria possesses one of Africa’s largest gas reserves, translating those resources into economic growth will require faster investments, improved supply reliability, and bold policy decisions to secure the country’s future in the global LNG industry.
source: The cable
