By Damilola Adeleke

Nigeria’s liquefied natural gas (LNG) production has dropped significantly due to a sharp decline in gas supply, following widespread pipeline vandalism. Reports indicate that Nigeria LNG Limited (NLNG) is currently receiving only 20% of the gas needed to operate at full capacity.

The company’s Chief Executive Officer, Philip Mshelbila, revealed that only two of its six processing units are in operation, as three major gas pipelines remain out of service. The situation has led to a major slump in Nigeria’s LNG exports, raising fears of a global supply shortage that could push up prices in Asia and Europe.

Industry data shows that in 2024, nearly half of Nigeria’s LNG shipments were exported to Asia, while a third went to Europe. Analysts warn that if disruptions persist, international buyers may seek more stable suppliers, potentially weakening Nigeria’s position in the global gas market.

Figures indicate that LNG exports from Nigeria fell by 40% in February compared to the previous month. The decline comes amid ongoing security challenges, including sabotage, oil theft, and aging infrastructure, which have long hindered the country’s energy sector.

Key stakeholders, including Shell, the Nigerian National Petroleum Company (NNPC), TotalEnergies, and Eni, have yet to comment on the crisis. Meanwhile, the government has vowed to bolster security around vital oil and gas infrastructure. However, unless urgent action is taken, Nigeria could face further revenue losses, posing a serious threat to its economic stability.