NLNG shifts to third-party gas deals to sustain production

Nigeria LNG Limited (NLNG) says it is ramping up third-party gas sourcing to maintain production levels and meet rising energy demand in Africa and global markets.

The company’s General Manager, Production, Mr. Nnamdi Anowi, disclosed this at the Gastech Exhibition and Conference in Milan, Italy, during a Focused Group Session themed “Resilience in the Face of Operational Challenges – The NLNG Story.”

Anowi explained that International Oil Companies (IOCs) have shifted from onshore to deepwater assets, creating supply gaps that forced NLNG to adjust its strategy. He noted that while NLNG hit a record 316 LNG cargoes in 2019, subsequent divestments and supply disruptions necessitated a rethink.

“Our initial gas came from shareholder IOCs. But with divestments like Eni’s asset transfer to Oando, we turned to third-party suppliers. Today, 75 per cent of our feed gas comes from them, and we have secured several Gas Supply Agreements to keep operations running,” he said.

He added that a second tranche of third-party supply would arrive in October, with expectations of stable gas availability from late 2026 through early 2027.

Highlighting Africa’s energy deficit, Anowi pointed out that 60 per cent of the continent’s population still lacks access to affordable energy despite abundant reserves. He stressed that unlocking Nigeria’s offshore gas potential, supported by government incentives, could change this narrative.

“With energy access, Africa can become a global manufacturing hub. What happened in Nigeria when power supply improved can happen across the continent—industries will thrive, jobs will be created, and production will shift to Africa,” he said.

On NLNG’s operations, Anowi noted that the company runs six trains with a combined 22 million tonnes per annum (MTPA) capacity, while Train 7—currently under construction—will expand output by over 30 per cent. However, plant utilisation has averaged just 60 per cent in the past three years, underscoring the importance of alternative supply strategies.

He reaffirmed NLNG’s commitment to tackling energy poverty and driving Africa’s industrial growth.

Meanwhile, Ms. Tolulope Ajitoni, a Senior Instrumentation Engineer at NLNG, presented a paper on “New Trends in Operational Technology Security.” She emphasized the growing risk of cyberattacks in the LNG sector, warning that breaches could trigger catastrophic safety incidents.

“In the next 25 years, LNG will remain central to power, cooking, and industry. Protecting this infrastructure from cyber threats is no longer optional,” she said.

Ajitoni recommended a five-layer cybersecurity framework—covering identification, protection, detection, response, and recovery—stressing that operational security is critical to safeguarding both lives and assets.