Nigeria’s LNG exports fall 20% amid rising pipeline attacks

Nigeria’s Liquefied Natural Gas (LNG) exports have seen a dramatic decline of 20 percent, primarily due to a surge in pipeline attacks and persistent security challenges in the Niger Delta region, according to findings by BusinessDay.

The decline in LNG exports is a significant blow to Nigeria’s economy. Natural gas exports constitute a major portion of the country’s foreign earnings, and the drop in shipments is expected to affect the government’s budget revenue.

According to Bloomberg, the sabotage and vandalism have curtailed gas supplies to its plant and this is affecting scheduled shipments.

“The loss of facilities due to vandalism and sabotage impacts feed-gas supplies to NLNG and delivery timelines,” Sophia Horsfall, NLNG’s general manager for external relations and sustainable development, told the international news service.

Some shipments due to be loaded next month may be delayed by as many as 10 days, a person familiar with the matter said, asking not to be identified discussing confidential information.

Read also: Amongst the waves – Navigating the upcoming LNG exports surge and the perils of oversupply

Security challenges have disrupted the country’s gas exports in recent years, although shipments from the Nigeria LNG facility rebounded in 2024.

However, the most recent setback comes at a time when demand for LNG in Europe is soaring due to the loss of much of Russia’s piped gas and rapidly depleting reserves. Europe is a crucial market for Nigerian LNG.

Last week, LNG exports from Nigeria dropped by around 20 percent, according to ship-tracking data from Bloomberg.

Nigeria LNG declared force majeure in October 2022 after its suppliers did the same, a measure that permits halting deliveries due to uncontrollable circumstances.

The company is working closely with its gas suppliers and relevant government security agencies to improve safety for upstream production and transmission, as stated by Horsfall. “Recent efforts have shown encouraging results, which are currently being assessed for reliability.”