Nigeria recorded its strongest liquefied natural gas (LNG) export performance in five years in December 2025, as shipments rose to 2.1 billion cubic metres, signalling a turnaround for Africa’s largest LNG producer after prolonged feed-gas shortages.
Industry data indicate that Nigeria’s improved performance was driven by increased feed-gas availability following the transfer of onshore oil and gas assets previously operated by Shell to an indigenous consortium, Renaissance. The transition has helped ease long-standing production and maintenance challenges affecting gas supply to Nigeria LNG’s Bonny Island facility.
Analysts say the new operators have focused on stabilising operations and reducing downtime, allowing gas output from key fields to recover. Additional supply commitments from independent producers have also supported the resurgence.
Nigeria LNG Limited operates six liquefaction trains with a combined capacity of about 22 million tonnes per annum but has struggled in recent years to exceed 50 per cent utilisation due to pipeline vandalism, upstream production issues, and weak gas-gathering infrastructure. In December, output is estimated to have reached between 70 and 75 per cent of installed capacity, a marked improvement on recent averages.
The improved supply outlook has been reinforced by long-term gas supply agreements, including a deal that will gradually scale deliveries from offshore producers to NLNG over the next few years. Industry executives say Nigeria’s gas production has expanded significantly over the past decade, reflecting a broader shift toward monetising gas resources rather than flaring.
Nigeria’s rebound comes at a critical moment for global LNG markets, which remain tight amid geopolitical disruptions and rising demand from Europe and Asia. Nigeria’s domestic gas demand shows little seasonal fluctuation, offering exporters greater consistency throughout the year.
Despite the gains, analysts caution that security risks in the Niger Delta, ageing pipelines, and delays to the NLNG Train 7 expansion continue to pose challenges to sustained growth.
Still, the December export surge offers a positive signal for Nigeria’s economy, providing much-needed foreign exchange earnings and strengthening its position in an increasingly competitive global LNG market.
