A new report has exposed the severe impact of vandalism and sabotage on the operations of Nigeria LNG Limited (NLNG) at its Bonny Island facility, revealing that the company’s natural gas supplies have plunged by an alarming 80 percent. According to Bloomberg, only 20 percent of the company’s required gas is being met, leaving the plant struggling to maintain output.
The report sheds light on how constant attacks on the facility’s infrastructure, including key gas pipelines, have crippled the operation and severely disrupted the export of liquefied natural gas (LNG). Last week, Philip Mshelbila, the CEO of NLNG, confirmed at the Nigeria International Energy Summit in Abuja that only two out of the six processing units at the Bonny Island plant are currently operational, and that three critical gas pipelines remain down.
Vandalism and sabotage have led to what Mshelbila described as “persistent and debilitating attacks” that have severely curtailed the company’s ability to meet demand. This disruption could have far-reaching consequences for global LNG markets, especially as Nigeria, a major LNG exporter, has already seen its export volume decline.
Bloomberg’s report highlights that in 2024, nearly half of Nigeria’s LNG exports were directed to Asia, while another third was sent to Europe, with the remaining shipments reaching the Americas and the Middle East. However, the vandalism-induced decline in LNG output has caused a sharp 40 percent drop in exports in February alone compared to the previous month. The destruction of critical pipelines by suspected vandals has also delayed planned shipments for the following month, with delays of at least 10 days.
The international impact of this crisis could drive up spot LNG prices, especially in Asia and Europe, where global supply chains are already under pressure.
Adding to the financial woes, last Wednesday, a London court ordered Nigeria LNG to pay $380 million in compensation to two major commodity traders, Vitol and Glencore, for failing to deliver contracted LNG cargoes. This decision further underscores the mounting challenges facing the company, with disruptions in operations leading to financial penalties.
Shell Plc., a major stakeholder in Nigeria LNG alongside Nigerian National Petroleum Corp., TotalEnergies, and Eni, has yet to comment on the situation. Similarly, Nigeria LNG has not responded to inquiries regarding the reduction in its gas supply.
The NLNG was established as a key player to harness Nigeria’s vast natural gas resources, providing both domestic supply and international LNG exports. But now, the ongoing crisis puts the facility’s future—and the global LNG market—at significant risk.
