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Project Insights

Challenges lie ahead for Nigeria LNG expansion

An unfavourable commercial environment and adverse market dynamics present significant hurdles to the Nigeria LNG expansion project despite the developers closing in on FID An unfavourable commercial environment and adverse market dynamics present significant hurdles to the Nigeria LNG expansion project despite the developers closing in on FID.
By Abhishek Kumar 22 November 2019 Middle East & Africa / LNG 0 34814
The Bonny Island LNG plant in Nigeria. (Shell)

The prospects for FID on the delayed Nigeria LNG (NLNG) expansion project are improving, but how quickly commercial operations will begin remains uncertain. Nigeria is the biggest gas producer and LNG exporter in sub-Saharan Africa, but LNG sourced from the country is facing tough competition from existing and new suppliers – a trend that is set to become more prominent over the coming years.

Consequently, the success of the expansion hinges not only on beating projects proposed in Qatar, Mozambique, Senegal and Mauritania in terms of...