The Nigeria Liquefied Natural Gas (NLNG) Limited is grappling with a severe operational crisis, as natural gas supply to its Bonny Island facility has plummeted by 80%, a recent Bloomberg report has revealed.
The drastic reduction means that only 20% of the company’s required gas supply is being met, posing a significant threat to Nigeria’s revenue generation. This disruption endangers the country’s projected 2025 dividends of N727 billion, a substantial 113% increase from the N346 billion recorded in 2024.
Vandalism and sabotage have been cited as key factors crippling operations at the facility, affecting LNG exports and reducing the functionality of its processing units. Currently, only two of the six processing units at the Bonny Island plant are operational, with three critical gas pipelines rendered inoperative due to persistent attacks. Speaking at the Nigeria International Energy Summit in Abuja last week, NLNG Chief Executive Officer Philip Mshelbila lamented the impact of these disruptions.
The decline in Nigeria’s LNG output has broader implications for the global energy market, with the report warning of potential price hikes due to tightening supply to Asia and Europe. In 2024, nearly half of Nigeria’s LNG exports were destined for Asia, while one-third went to Europe, with the remainder distributed to the Americas and the Middle East.
In February 2025, Nigeria’s LNG exports declined by 40% compared to the previous month, following the destruction of vital gas pipelines by suspected vandals. This has led to shipment delays of at least 10 days for scheduled March deliveries.
Stakeholders in Nigeria LNG include Shell Plc, the Nigerian National Petroleum Corporation (NNPC), TotalEnergies, and Eni. However, neither Shell nor Nigeria LNG has responded to requests for comments on the supply disruptions.
Established to harness Nigeria’s vast natural gas resources for domestic use and export, Nigeria LNG has played a critical role in the country’s energy sector. Over the past 25 years, it has disbursed $44 billion in dividends, with the federal government receiving approximately $21.56 billion.
The current operational setbacks could have long-term consequences, including reduced export earnings and potential job losses in the sector. Security challenges in the Niger Delta, where much of Nigeria’s oil and gas infrastructure is located, continue to pose a significant threat to energy operations.
Meanwhile, in a related development, a London court last Wednesday ordered Nigeria LNG to pay $380 million in compensation to commodity traders Vitol and Glencore for failing to fulfill contractual deliveries of LNG cargoes.
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