Nigeria’s LNG Sales Slump Amid Security And Investment Challenges

The New Diplomat
Writer
Nigeria’s LNG Sales Slump Amid Security And Investment Challenges

Ad

Choosing between the death of Nigerian democracy and electoral reforms, by Owei Lakemfa

By Owei Lakemfa When doctors recommend 16 major surgeries and 21 minor ones for a patient, no divination is needed to tell you the patient is in a grave situation. This is the situation with the Nigerian electoral process where teams of civil society associations have recommended 21 constitutional and 16 Electoral Act amendments. These…

Court voids Pat Utomi’s shadow govt, says concept alien to Nigeria’s system

By Obinna Uballa A federal high court in Abuja on Monday restrained Pat Utomi, professor of political economy, and his associates from proceeding with their plan to establish a shadow government in the country. Delivering judgment in a suit filed by the Department of State Services (DSS) on Monday, Justice James Omotosho declared that the…

Reactions as FG Makes Thesis Submission prerequisite for NYSC participation

By Abiola Olawale Mixed reactions have begun to trail the decision of the Federal Government to make thesis and project submission mandatory for all prospective National Youth Service Corps (NYSC) members. This comes as the policy, effective from October 6, 2025, ties NYSC mobilisation and exemptions directly to compliance with the National Policy for the…

Ad

By Michael Kern 

Nigeria’s revenues from LNG exports declined in the first quarter of 2023 to the lowest in five quarters, due to security challenges and declining associated natural gas production at oilfields, Nigerian media reported on Monday, quoting government data and industry experts.

Between January and March this year, Nigeria’s earnings from liquefied natural gas exports slumped by 18% compared to the third quarter of 2022 and stood at $1.3 billion (622 billion Nigerian naira), per data from the National Bureau of Statistics (NBS) cited by local news outlet BusinessDay. This was the lowest quarterly income from LNG for Nigeria since the first quarter of 2022, when LNG prices and demand surged following the Russian invasion of Ukraine.

The Nigerian revenues, however, were down not only because of the recent lull in LNG markets. Issues with security in oil- and gas- producing areas and the lack of new drilling and investment in new fields are also taking their toll.

In January this year, Nigeria LNG, the company exporting liquefied natural gas from the African country, canceled several shipments due to vandalism on gas pipelines that disrupted operations.

Nigerian LNG accounted for 7% of the European supply of the super-chilled fuel in 2022, per data compiled by BloombergNEF.

“Incessant attacks on oil and gas facilities, the rising cost of oil and gas production, need for newer drilling technology, and community issues reduced the amount of associated gas, which serves as feed gas for LNG companies to purify, liquefy and ship for export,” Olufola Wusu, partner and head of oil and gas at Megathos Law Practice, told BusinessDay.
Maturing oil and gas fields, the lack of new well drilling, and delays in the tenders for new exploration blocks also played a part in the lower revenues for Nigeria from LNG, Wusu added.

Nigeria has already seen $21 billion worth of assets divested, which could continue to reduce its oil and gas production.

NB: Michael Kern wrote this article for Oilprice.com

Ad

Unlocking Opportunities in the Gulf of Guinea during UNGA80
X whatsapp