Persistent force majeure at Bonny: Nigeria’s LNG exports in difficulty

More than a year after it was first declared, Nigeria's Bonny LNG export facility remains under force majeure, with production falling below 50% of its design capacity, according to the plant operator on November 8.
Force majeure prolongée à Bonny

Partagez:

Nigeria’s LNG export facility at Bonny, which has a nominal capacity of 22.5 million tons per year (31 billion cubic meters per year), has remained in a state of force majeure for over a year due to ongoing disruptions in gas supply. This is due to the impact of flooding on the ability of gas suppliers to supply the plant.
A spokesperson for Nigeria LNG (NLNG) said:

“Gas supplies to the Bonny plant are still severely constrained, keeping production well below capacity.”

Impact on LNG production capacity

The plant is currently being expanded to a capacity of 30 million tonnes per year with the addition of a seventh production unit. Last year, Nigeria’s LNG exports reached around 14.7 million tonnes, according to data from S&P Global Commodity Insights, and this year they have reached 12.5 million tonnes so far.

Major importers of Nigerian LNG in 2023

Spain was the main importer of Nigerian LNG in 2023, with imports of 3.3 million tonnes, followed by Portugal (1.4 million tonnes) and China (0.9 million tonnes).

Challenges in gas supply and LNG pricing

Philip Mshelbila, Managing Director of NLNG, said that disruptions to gas supplies continue due to recurring sabotage attacks on pipelines and low production from aging wells. “The company is experiencing difficulties in obtaining an adequate supply of gas, resulting in underproduction at less than 50% of total installed capacity,” he said. He added that NLNG was looking to source gas from outside its traditional suppliers to improve the performance of the site’s six existing units. Disruptions to the gas supply had already reduced the plant’s output to 68% of its rated capacity last year.
Meanwhile, spot LNG prices remain high, with the Platts JKM reference price for delivery in Northeast Asia valued at $15.56/MMBtu on November 7, according to data from S&P Global Commodity Insights.

Nigeria’s LNG export facility at Bonny continues to face significant challenges due to ongoing force majeure caused by disruptions in gas supply. This situation highlights the need for Nigeria to diversify its gas supply sources to guarantee stable production and support the country’s economic development, in line with the “Decade of Gas” launched in 2021.

Shell Canada Energy announces shipment of the first liquefied natural gas cargo from its LNG Canada complex, located in Kitimat, British Columbia, primarily targeting fast-growing Asian economic and energy markets.
The Australian government is considering the establishment of an east coast gas reservation as part of a sweeping review of market rules to ensure supply, with risks of shortages signalled by 2028.
The increase in oil drilling, deepwater exploration, and chemical advances are expected to raise the global drilling fluids market to $10.7bn by 2032, according to Meticulous Research.
Enbridge Gas Ohio is assessing its legal options following the Ohio regulator's decision to cut its revenues, citing potential threats to investment and future customer costs.
The small-scale liquefied natural gas market is forecast to grow at an annual rate of 7.5%, reaching an estimated total value of $31.78bn by 2030, driven particularly by maritime and heavy-duty road transport sectors.
The European Union extends gas storage regulations by two years, requiring member states to maintain a minimum fill rate of 90% to ensure energy security and economic stability amid market uncertainties.
Energy Transfer strengthens its partnership with Chevron by increasing their liquefied natural gas supply agreement by 50% from the upcoming Lake Charles LNG export terminal, strategically aiming for long-term supply security.
Woodside finalises the divestment of a 40% stake in the Louisiana LNG project to Stonepeak, injecting $5.7 billion to accelerate developments and optimise financial returns ahead of first gas delivery scheduled in 2026.
Keranic Industrial Gas seals a sixty-day exclusivity deal to buy Royal Helium’s key assets, raise CAD9.5mn ($7.0mn) and bring Alberta’s Steveville plant back online in under fifteen weeks.
The Irish-Portuguese company Fusion Fuel strengthens its footprint in the United Arab Emirates as subsidiary Al Shola Gas adds AED4.4 mn ($1.2 mn) in new engineering contracts, consolidating an already robust 2025 order book.
Cheniere Energy validates major investment to expand Corpus Christi terminal, adding two liquefaction units to increase its liquefied natural gas export capacity by 2029, responding to recent international agreements.
A study by the International Energy Agency reveals that global emissions from liquefied natural gas could be significantly reduced using current technologies.
Europe is injecting natural gas into underground storage facilities at a three-year high, even as reserves remain below historical averages, prompting maximized imports of liquefied natural gas (LNG).
South Korea abandons plans to lower electricity rates this summer, fearing disruptions in liquefied natural gas supply due to escalating geopolitical tensions in the Middle East, despite recent declines in fuel import costs.
Russia positions itself to supply liquefied natural gas to Mexico and considers expanded technological sharing in the energy sector, according to Russian Energy Minister Sergey Tsivilyov.
Israel has partially resumed its natural gas exports to Egypt and Jordan following a week-long halt due to the closure of two major offshore gas fields, Leviathan and Karish.
Nepal reveals a significant potential reserve of methane in the west of the country, following exploratory drilling conducted with technical support from China, opening new economic prospects.
Petronas formalizes a memorandum with JOGMEC to secure Japanese LNG deliveries, including a first cargo from LNG Canada scheduled for July at Toho Gas.
Belgrade is currently finalising a new gas contract with Russia, promising Europe's lowest tariff, according to Srbijagas General Director Dusan Bajatovic, despite Europe's aim to eliminate Russian imports by 2027.
TotalEnergies and QatarEnergy have won the Ahara exploration licence, marking a new stage in their partnership with SONATRACH on a vast area located between Berkine and Illizi.