Nigeria's share of the global liquefied natural gas (LNG) market has declined from six per cent to five per cent and could fall as low as two per cent if urgent steps are not taken to expand processing capacity and address gas supply constraints, the Managing Director and Chief Executive Officer of Nigeria LNG Limited (NLNG), Adeleye Falade, has warned.
Falade raised the concern during an NLNG Facts and Figures presentation in Lagos, where he cautioned that the country was steadily losing ground to competitors that are moving more aggressively to monetise their gas resources.
According to him, Nigeria's slow pace of investment in LNG processing infrastructure has weakened its position in the global market despite possessing one of the world's largest proven gas reserves.
"About three to four years ago, NLNG held six per cent of the global LNG market share. Eventually, we're down to five per cent. There are other countries that are growing," he said.
The NLNG boss warned that unless Nigeria accelerates investment in gas processing and resolves feedstock supply challenges, its global market share could decline further to about two per cent.
Falade compared Nigeria's gas resources with those of major LNG-producing countries, noting that while Nigeria has about 209 trillion cubic feet (TCF) of proven gas reserves, its LNG processing capacity stands at only about 22 million tonnes per annum (MTPA).
He contrasted this with Australia, which has approximately 120 TCF of proven gas reserves but a processing capacity of about 88 MTPA, and Malaysia, whose processing capacity also exceeds Nigeria's despite having smaller gas reserves of about 97 TCF.
"But then you look at us—209 TCF and just 22 MTPA. At that point, it became obvious to us that we needed to be more ambitious about our growth," he said.
Falade noted that the global transition towards cleaner energy sources presents Nigeria with a significant opportunity to maximise the value of its gas resources, but warned that the opportunity would not remain open indefinitely.
"While the world has moved away from sources of energy that are very dirty, gas will still be dominant in the energy mix—not just today, but for the next 10, 20, 30, even 40 to 50 years. But we can't assume that window will remain open forever," he said.
He explained that natural gas has applications beyond electricity generation, including fertiliser production, petrochemicals, cosmetics manufacturing and transportation through compressed natural gas (CNG) vehicles.
According to him, expanding gas utilisation across multiple sectors would enable Nigeria to derive greater economic value from its vast natural gas endowment.
Falade said NLNG had already begun implementing expansion plans through the ongoing Train 7 project while preliminary work had commenced on proposed Trains 8, 9 and 10.
"That ambition is why Train 7 is underway, and why NLNG has begun exploratory work on Trains 8, 9 and 10. They are still at a very early stage, but discussions have already begun because we have a clear growth agenda," he said.
He stressed that expanding LNG production capacity would be crucial for Nigeria to remain competitive in the international market and attract long-term investment.
The NLNG chief, however, identified feedstock shortages as one of the biggest challenges confronting the company's expansion plans.
He said the divestment of Shell and Eni from Nigeria's onshore oil and gas assets had compelled NLNG to diversify its gas supply sources beyond its shareholder companies.
"I think today, close to 70 to 75 per cent of our gas supply now comes from outside the affiliates of our shareholders," he said.
Falade warned that if gas supply constraints persist, NLNG may have to reconsider its current operating model, underscoring the need for urgent reforms to secure adequate feedstock for future expansion.
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