Nigeria LNG Limited is currently facing a significant operational crisis at its Bonny Island facility, with natural gas supplies plummeting by 80%, according to Bloomberg.
This drastic reduction has been attributed to persistent pipeline vandalism, leading to the shutdown of critical gas supply lines and severely hampering production capabilities.
NLNG is currently receiving only 20% of its required gas supply, with an 80% shortfall due to ongoing disruptions.
This worsening crisis poses a serious threat to Nigeria’s revenue, particularly the projected ₦727 billion in 2025 dividends— a 113% increase from last year’s ₦346 billion.
NLNG’s Chief Executive Officer, Philip Mshelbila, revealed last week at the Nigeria International Energy Summit in Abuja that only two out of six processing units at the Bonny Island facility are currently operational.
He also confirmed that three key gas pipelines are down, further exacerbating the supply crisis.
The report highlighted that declining output from Nigeria’s sole LNG facility could tighten global supply to Asia and Europe, potentially driving up spot prices in those markets.
In 2024, nearly 50% of Nigeria’s LNG exports were shipped to Asia, while one-third went to Europe. The remaining volumes were supplied to the Americas and the Middle East, according to Bloomberg data.
Nigeria’s LNG exports dropped by 40% in February compared to the previous month due to the destruction of vital pipelines by suspected vandals, according to Bloomberg data. As a result, planned shipments for next month have been delayed by at least 10 days.
Shell Plc., a key stakeholder in NLNG alongside NNPC, TotalEnergies, and Eni, has yet to issue a response, as a company spokesperson did not immediately comment.
Nigeria LNG was established as a limited liability company to harness the country’s vast natural gas resources, producing Liquefied Natural Gas (LNG) and Natural Gas Liquids (NGLs) for both domestic use and export markets.
