On Nigeria’s LNG Initiatives and Global Presence

On Nigeria’s LNG Initiatives and Global Presence

By Prof. Bolaji Aluko PhD, FNSChE, FNSE

One asks: with all this ongoing Iran/US/Israel war and Liguefied Natural Gas ( LNG) lanes disruption, why can’t Nigeria take some advantage here?

Well, let’s start with our gas endowments.

Nigeria’s Gas Reserves and Production.
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Nigeria’s proven gas reserves currently stand at 210.54 trillion cubic feet (TCF), comprising 109.51 TCF of Non-Associated Gas (NAG) and 101.03 TCF of Associated Gas (AG)

On the other hand, Nigeria’s gas production is expected to grow significantly, with plans to increase production to 10 billion cubic feet per day (bcf/d) by 2027 and 12 bcf/d by 2030, driven by the NNPC Gas Master Plan 2026 and the Decade of Gas initiative. However, current production is hindered by infrastructure gaps and regulatory challenges

1 billion cubic feet (bcf) of natural gas is approximately equal to 0.021 million tons (MT) of LNG. [You can easily estimate this from 22.4 litres (0.7907 cubic feet) of ideal CH4 at NTP is 16g)]

So, to convert bcf to MT:
– 1 bcf ≈ 0.021 MT
– 1 MT ≈ 47.6 bcf

This conversion isn’t exact as it depends on the gas composition, but it’s a common approximation

Let’s apply it to Nigeria’s target:
– 10 bcf/d ≈ 0.21 million tons per day (MTD) of LNG
– 10 bcf/d ≈ 76.65 million tons per annum (MTPA) of LNG

So Nigeria aims to increase production to 10 bcf/d by 2027 and 12 bcf/d by 2030 means that’s roughly 76.65 MTPA and 92 MTPA respectively

Nigeria’s LNG Initiatives
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Updates on Nigeria’s LNG Projects – NLNG’s 7th Train at Bomny (Rivers State), Brass (Bayelsa State) & Olokola (Ondo State)

——7th Train

The 7th Train LNG project at Bonny Island is expected to increase Nigeria LNG’s production capacity by 35%, from 22 million tonnes per annum (mtpa) to 30 mtpa. The new train will add 8.4 million metric tonnes per annum (mtpa) of production capacity

The project includes:
– A new liquefaction unit
– An 84,200m ³ storage tank
– A 36,000m ³ condensate tank
– Three gas turbine generators

The estimated cost of the project is around $10 billion, and it’s expected to create thousands of jobs, both directly and indirectly

——Brass

The Brass LNG project has a planned annual capacity of 8.4 million metric tonnes, with an initial plan for a two-train, 10 million metric tons per year (mtpa) liquefied natural gas (LNG) terminal . Initiated under former President Olusegun Obasanjo, Nigerian National Petroleum Company Limited (NNPCL) is reviving the Brass LNG project, a $20 billion investment located in Bayelsa State, as part of efforts to boost Nigeria’s gas capacity by over 22 million tonnes per annum. The project, aims to create thousands of jobs, spur domestic gas demand, generate electricity, and diversify the Federal government’s revenue ¹ ² ³.

The project stalled due to unfavourable market dynamics and slow decision-making but is now being revived with discussions underway with investors. The NNPCL believes the project, along with the Olokola LNG project, will significantly contribute to Nigeria’s energy security and economic development ¹

——-Olokola

The Olokola (OK) LNG Project is a long-stalled $9.8 billion liquefied natural gas terminal located between Ogun and Ondo States in Nigeria, originally designed with a 12.6 million metric tons per annum (mtpa) capacity. Initiated in 2005, the project was abandoned by partners like Shell and Chevron in 2013 due to lack of progress, but NNPC began efforts to revive it in 2024 to boost Nigeria’s gas capacity.

Key Project Status (2025–2026):
Status: The project is undergoing1 revival efforts by NNPC Ltd following its abandonment in 2013.
Capacity & Scope: Designed as a 12.6 mtpa (four-train) terminal, intended to process natural gas for export.
Investment & Partners: Initially a joint venture between NNPC (49.5%), Shell, Chevron, and BG Group. As of 2024–2025, the NNPC is looking for new investors to revive the project, potentially as part of a $30 billion investment push alongside the Brass LNG project.

Location: Situated in the Olokola Free Trade Zone (OKFTZ) on the coast between Ogun and Ondo States.
Recent Developments: In 2025, Ogun State Governor Dapo Abiodun was actively wooing investors (including from Brazil) to participate in the pproject.

Challenges and Potential:
Past Failures: The project was stalled for over a decade due to low gas prices, high capital expenditure, and slow political decision-making.
Revival Outlook: While considered “dead” for many years, the Petroleum Industry Act (PIA) 2021 and President Tinubu’s administration reforms have rekindled efforts to re-launch the project, with officials expressing optimism about potential investors in 2024 and 2025.
Strategic Importance: It is intended to boost Nigeria’s gas utilization and export capacity, complementing other projects like the Ajaokuta-Kaduna-Kano (AKK) pipeline

Global LNG Info
—–‐——–

Global LNG production reached 382 million metric tons (mmt) in 2022 and was projected to reach 450 mmt by 2025.
Global LNG capacity is expected to reach 574 MTPA by 2029, driven by expansions in the US, Qatar, and Australia.

Here were the top LNG-producing countries in 2022:
1. *United States*: 102 million metric tons (mmt)
2. *Australia*: 76 mmt
3. *Qatar*: 77 mmt
4. *Malaysia*: 34 mmt
5. *Nigeria*: 23 mmt
6. *Russia*: 19 mmt
7. *Indonesia*: 28 mmt
8. *Canada*: 21 mmt

Today, the top LNG producers in the world are:
1. *Qatar* – 21% global capacity, with major projects like North Field East and North Field South expansions targeting over 126 MTPA by 2030.
2. *United States* – 20% global capacity, with major LNG terminals on the Gulf Coast like Sabine Pass and Corpus Christi
3. *Australia* – 15% global capacity, with significant projects in Western Australia and Queensland
4. *Russia* – 10% global capacity, driven by Yamal LNG and Arctic LNG developments
5. *Malaysia* – 6% global capacity, with strong Petronas-led operations
6. *Nigeria* – 5% global capacity, Africa’s largest LNG producer through NLNG trains

Major LNG companies include:
– QatarEnergy (Qatar) – largest LNG supplier with 55.8 MMTA capacity
– Royal Dutch Shell (UK/Netherlands)
– Exxon Mobil (USA)
– Chevron (USA)
– Gazprom (Russia)

And What is to be Done?
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Noting thst Nigeria’s LNG –

Current :
Bonny (6 Trains) – 22 MTPA

Planned
Bonny (7th Train) – 8.4 MTPA
Brass (2 trains) – 8.4 MTPA
Olokola (4 trains) – 12.6 MTPA
———‐—-
Total – 51.4MTPA
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and noting that gas reserve limitations and shipping lanes along the Atlantic and Indian Oceans to most of the world do not pose problems, what Nigeria should do is rather simple: greater investments and partnerships in:
_oil production, for more associated gas
_ non-associated gas production (greater emphasis)
_ LNG production, both existing (7th Train) and planned (Brass, Olokola)

There should also be greater consistency in LNG production ambitions from official policy document to document.

There you have it.

Bolaji Aluko
March 5, 2026