ByKingsley Benson
The Nigerian National Petroleum Company (NNPC Limited) says rising geopolitical tensions in the Middle East have boosted global demand for Nigeria’s liquefied natural gas (LNG) creating new commercial opportunities for the country.
Speaking recently at the CERAWeek energy conference in Houston, the company’s Executive Vice President, Mr Olalekan Ogunleye, said that buyers are increasingly turning to Nigeria due to its strategic location and vast gas reserves.
“We are right in the middle of the market. We are 10 sailing days from Europe, close to the Atlantic Basin and close to Asia,” Ogunleye said, continuing: “We see commercial opportunities on top of the fact that we have the most gas reserves in Africa.”
He noted that global demand for natural gas remains resilient despite ongoing geopolitical tensions, adding that NNPC is already positioning to expand supply capacity.
According to him, discussions are underway to add two new LNG trains, while the company is also pursuing a 12 million metric tonnes per annum LNG project alongside gas-based industrial hubs to monetise over 200 trillion cubic feet of gas reserves in Nigeria.
Nigeria LNG, NLNG, in which NNPC is the largest shareholder, currently exports up to 22 million metric tonnes annually and is constructing a seventh train expected to be completed by 2027.
The surge in demand follows supply uncertainties from major producers. On March 19, the Chief Executive Officer of QatarEnergy, Mr Saad al-Kaabi, indicated that the company may declare force majeure on long-term LNG supply contracts of up to five years to countries including Italy, Belgium, South Korea and China.
The development has opened a supply gap in the global gas market, positioning Nigeria to capture additional market share as energy buyers seek more reliable and geographically strategic sources of LNG.
