Addendum: International and Domestic Prices of Natural Gas (NG), Compressed Natural Gas (CNG) and LIquefied Natural Gas (LNG)

Addendum: International and Domestic Prices of Natural Gas (NG), Compressed Natural Gas (CNG) and LIquefied Natural Gas (LNG)

By Prof. Bolaji Aluko PhD, FNSChE, FNSE

Introduction
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Although they are all largely methane (CH4), their source, further processing , physical state (NG and CNG are gas, LNG is liquid) and uses make their prices on the domestic and international markets to be different

Their prices are invariably quoted as “$ per MMBtu” where:

1 MMBtu (Million British Thermal Units) = 1,000,000 BTU. The “MM” in MMBtu stands for “million” (1,000,000).

MMBtu is a unit of energy, often used to express the energy content of natural gas. 1 MMBtu is equivalent to approximately 1,000 cubic feet of natural gas.

CNG, on the other hand, is a form of natural gas that is compressed for use as a fuel, typically for vehicles.

The energy content of CNG is also usually measured in MMBtu or its equivalent. Here, 1 MMBtu is roughly equivalent to:
– 28.26 cubic meters (about 1000 cu ft) of CNG (at standard conditions)
– or about 0.83 kg of CNG (depending on composition)

With respect to LNG , 1 ton i(1000 kg) is equivalent to 12,000,000 BTUs = 12MMBTUs. So, to convert BTU (MMBTU) to tons, divide the BTU (MMBTU) value by 12 million (by 12).

Some LNG Prices
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International LNG prices are expected to soften in 2026 due to a surge in global supply, particularly from the US and Qatar. Asian spot LNG prices are forecast to average between $9 to $9.90 per MMBtu in 2026, down from $12.45 in 2025. European gas prices are also expected to decrease, with forecasts ranging from $9.50 to $9.74 per MMBtu

Some forecasts suggest:
– Henry Hub natural gas futures price: $4.03/MMBtu in 2026 and $4.40/MMBtu in 2027
– Asian spot LNG price: $9-$9.90/MMBtu in 2026
– European TTF gas price: $9.50-$9.74/MMBtu in 2026
(TTF stands for Title Transfer Facility. It’s a virtual trading point for natural gas in the Netherlands, and it’s become a key benchmark for European gas prices, like a major gas hub where prices are set)

CNG Prices
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International CNG (Compressed Natural Gas) prices aren’t directly available, but one can get an idea of LNG prices, which are related.

For CNG, prices vary by region and are often tied to local natural gas prices. In the US, Henry Hub natural gas prices are around $2.98-$3.06/MMBtu as of March 2026

Domestic Pricing
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Nigeria’s domestic prices for Natural Gas (NG), Compressed Natural Gas (CNG), and Liquefied Natural Gas (LNG) are influenced by various factors, including global market trends, government policies, and infrastructure development.

Recently, the Federal Government launched a new CNG pricing framework to promote cleaner energy adoption, regulate supply, and lower costs for consumers. This initiative aims to accelerate the transition to gas-powered mobility, with over 65 operational CNG refueling stations and more than 50,000 gas-powered vehicles nationwide ¹.

As for NG, the government has prioritized rapid advancement of the domestic gas sector to drive GDP growth. The Nigerian Midstream and Downstream Petroleum Regulatory Authority regulates gas pricing, ensuring a consistent supply to strategic sectors

LNG prices are often tied to global market rates, with Nigeria being a significant exporter. However, domestic LNG prices are not explicitly stated in the provided information.