Nigeria’s $10 Billion LNG Train 7 Project Nears Completion Ahead of 2026 Demand Surge
Nigeria is racing to complete its ambitious $10 billion LNG Train-7 project as global liquefied natural gas markets prepare for the largest supply wave in industry history, positioning the West African nation to capitalize on surging demand expected in 2026.
The Nigeria LNG Limited Train-7 gas project has reached 88% completion, with contractors intensifying efforts to meet the projected timeline for delivery. The project, designed to boost Nigeria’s LNG production capacity by 35% from 22 to 30 million tons per year (MTPA), represents a critical expansion of the company’s facilities on Bonny Island.
Dr. Sophia Horsfall, General Manager of External Relations and Sustainable Development at NLNG, confirmed that all parties are working to overcome remaining hurdles. “The overall project completion is about 88%. We are on track despite a range of global and local challenges, as with most global organizations involved in similar projects. However, NLNG and its EPC Contractor remain committed to delivering the project within the realigned schedule,” Horsfall stated.
The timing is crucial as Bernstein analysts forecast global LNG demand to rise to around 441 million tonnes per annum in 2026, up about 8.5% year on year. Growth is expected to be driven almost entirely by Asia, while Europe’s LNG imports are seen stabilizing near 120 MTPA, assuming only a limited return of Russian pipeline gas.
Major projects coming online in 2026 include Golden Pass LNG, Qatar’s North Field Expansion phases, Scarborough, and Nigeria LNG Train 7. Combined, roughly 93 MTPA of new capacity is expected to enter the market across 2025 and 2026, with supply additions averaging around 50 MTPA per year through 2028.
The Final Investment Decision for Train 7 was made on December 27, 2019, and in May 2020, the Engineering, Procurement, and Construction contract was awarded to the SCD JV Consortium, which includes affiliates of Saipem, Chiyoda, and Daewoo. Since commencing operations in 1999 with a two-train plant, NLNG rapidly expanded to a six-train facility, delivering over 6,000 LNG cargoes to international buyers.
However, the massive supply influx is expected to pressure prices. Bernstein forecasts spot LNG prices to fall from around $12 per mmbtu in 2025 to average about $9 per mmbtu over 2026 to 2028. If incremental volumes cannot be absorbed, spot prices could potentially fall toward the marginal cash cost of LNG supply, estimated at $5 to $6 per mmbtu, raising the risk of production shut-ins in North America.
Source: orientalnewsng.com
