Latest reports from the International Gas Union (IGU) reveal that exports from Nigeria have dropped by 13 per cent from 15.1 million tonnes in 2022 to 13 million tonnes in 2023.
The industry is facing a significant setback as feedstock shortages have caused a 13% decline in exports.
This development took the country from sixth place to eighth, losing its spot to Indonesia and Algeria, who exported 15.6 million tonnes and 13 millions of gas respectively last year.
According to the 2024 World LNG Report Liquefied Natural Gas (LNG), “Nigeria, whose export declined by 1.55 metric tonnes continued its force majeure, plagued by low volumes of feedstock gas due to upstream disruptions,” IGU stated.
The root cause of the problem lies in dwindling natural gas supplies available for liquefaction.
These feedstock shortages are attributed to various factors, including declining output from aging oil fields and pipeline vandalism that disrupts gas transportation.
According to the IGU, Nigerian LNG declared force majeure on some cargo loadings in October 2022, initially because of significant flooding across its upstream gas supply production regions, which required several gas production wells to be shut.
