Nigeria is seeing a further decline in liquefied natural gas (LNG) exports, the latest monthly gas report from the Forum of Gas Exporting Countries (GECF).
According to the data collected, Nigerian LNG exports fell by 210,000 tonnes in February 2023, a significant decrease from the previous year.
The Forum said that Africa’s largest economy’s LNG export problems are due to feed gas unavailability, leading to a declaration of force majeure on deliveries to the Bonny Oil and Gas Terminal.
“In Nigeria, reduced supply gas availability for LNG exports has contributed to reduced LNG exports,” said GECF. “NLNG announced in January 2023 a force majeure effect on the supply of feed gas to the liquefaction plant, effective February 2023.
In January 2023, a Force Majeure Event was announced in relation to Nigerian LNG shipments, which came into effect in February 2023. Nigeria lost its position as Africa’s leading exporter of LNG to Algeria as the continent’s largest economy experienced the largest drop in exports in January.
Nigerian LNG exports fell to around 1 million tonnes in January, a 35 percent drop compared to Algeria, which was around 1.1 million tonnes, according to Refinitiv Eikon, one of the world’s largest providers of real-time data.
Meanwhile, GECF (members and observers) LNG exports in February 2023 increased by 12 percent year-on-year from 1.74 Mt to 16.45 Mt.
Increasing GECF LNG exports were led by Qatar, Norway, Malaysia, Egypt, Mozambique, Angola, Algeria, Trinidad, and Tobago, Russia, and Peru. Aside from Nigeria, the UAE alone recorded a drop of 260,000 during this period.
However, together with January and February 2023, GECF LNG exports increased by 5.6 percent from 1.79 million tons year-on-year to 34.10 million tons.