Nigeria is increasingly embracing floating LNG (FLNG) and mini-LNG projects as strategic alternatives to overcome infrastructure challenges and fully capitalize on its vast gas resources, according to analysts at Rystad Energy.
Despite holding significant gas reserves, Nigeria has experienced a drastic decline in LNG production efficiency, dropping from 90 percent in 2018 to just 60 percent in 2023 due to pipeline vandalism, oil theft, and operational disruptions. This downturn has weakened Nigeria’s competitive position against global LNG giants.
FLNG technology presents a compelling solution for Nigeria’s offshore gas fields, where approximately 65 percent of the country’s reserves are located. These floating facilities can process gas at sea, reducing vulnerability to pipeline sabotage and enabling faster project deployment. Meanwhile, mini-LNG projects offer flexible solutions for domestic energy needs while providing scalable supply options to international buyers.
With Europe seeking alternatives to Russian gas and Asian demand rising, Nigeria’s strategic location and untapped reserves position it as a potentially crucial future supplier, particularly given its shorter shipping routes compared to US exports and its position outside the US-China tariff disputes.
Source: businessday.ng
