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Olugbemi. Adeyinka Ogunleye
2 months ago
Overview
Leaky pipelines plunge Nigeria LNG’s gas supply by 80%
…Exports decline by 40 percent
The operational crisis at Nigeria LNG Limited has continued to deepen as the outage at its Bonny Island facility drags on, with gas supplies plummeting by a staggering 80 percent, according to findings by BusinessDay. People familiar with the matter told Bloomberg on Tuesday that natural gas supplying Nigeria LNG Limited has fallen 80 percent to one-fifth of the massive plant’s needs.
This prolonged disruption, triggered by persistent pipeline vandalism, raises serious concerns about Nigeria’s ability to meet its export commitments amid a potential impact on its economy. Data compiled by Bloomberg showed declining output from Nigeria’s only LNG facility could trigger higher spot prices as global supply to Asia and Europe tightens.
Europe, which relies on NLNG for a substantial portion of its gas imports, is particularly vulnerable to supply disruption. “In 2024, almost half of Nigeria’s LNG exports went to Asia, with another third going to Europe and the remaining to the Americas and Middle East,” Bloomberg data showed.
Philip Mshelbila, managing director of Nigeria LNG Limited, emphasised that the company has struggled to meet global demand for liquefied natural gas because of the damage caused by illegal pipeline connections. “In the current moment, I am only running two trains out of six,” Mshelbila lamented at a panel session during this year’s Nigeria International Energy Summit.
More: https://businessday.ng/energy/article/leaky-pipelines-plunge-nigeria-lngs-gas-supply-by-80/
