As Europe grapples with severe cold weather, Nigeria is poised to earn N206.6 billion from gas exports to the continent.
Eko Hot Blog gathered that three vessels carrying a total of 211,000 tonnes of liquefied natural gas from Nigeria are en route to Spain for delivery this month.
According to data from the Nigerian Ports Authority (NPA), two of the vessels, LNG Bonny II and LNG Sokoto, with a combined 146,000 tonnes of cargo, are nearing the Port of Santa Cruz de Tenerife Anchorage in Spain.
The natural gas was loaded in Nigeria in late December 2024.
A third vessel, LNG Lokoja, carrying 65,000 tonnes of gas, is currently within the Gulf of Guinea waters, heading toward its European destination.
The estimated price per metric tonne is $588.40.
However, NPA data reveals that Nigeria’s monthly gas export capacity of 1.17 million tonnes has dwindled, with only 208,000 tonnes shipped out by three vessels in November 2024.
The shortfall of 959,000 tonnes is attributed to various factors, including corruption, theft, and attacks on pipeline infrastructure, leading to decreased production and revenues.
Shipping data indicates that LNG Sokoto transported 66,000 tonnes of gas to Europe in November, while Abalamabie and LNG Ondo carried 77,000 and 65,000 tonnes, respectively, from Nigeria’s Bonny Island.
In September, 1.36 million tonnes of gas valued at $936 million were shipped to Asia and Europe. Between April and August 2024, 1.20 million tonnes of gas worth $894 million (N1.43 trillion) were exported.
The Kpler shipping outlook noted that 37% of the 1.36 million tonnes exported in September were destined for Europe, followed by 23% to the Middle East and North Africa region, and 9% to North America.
In July, 1.07 million tonnes of gas left Nigeria’s Onne Port. Additionally, data revealed that a total of 361,000 tonnes were loaded by five vessels in May, and 473,404 tonnes were transported by seven ships in April 2024.
LNG Lagos II carried 77,000 tonnes in May, followed by Vivit Arabia LNG (77,000 tonnes), LNG Oyo (65,000 tonnes), LNG Port Harcourt (77,000 tonnes), and LNG Imo (65,000 tonnes).
In April 2024, LNG Kano transported 66,000 tonnes, LNG River Orashi carried 66,000 tonnes, LNG Bonny moved 77,000 tonnes, NLG Bayelsa shipped 66,000 tonnes, LNG Benue handled 66,000 tonnes, LNG Ondo managed 66,404 tonnes, and LNG Akwa Ibom loaded 66,000 tonnes.
Amidst the harsh European winter, several liquefied natural gas (LNG) shipments initially bound for Europe have been rerouted to Asia, as stronger Asian demand and easing gas prices in Europe influence market dynamics.
Three vessels – Shell’s LNG Ships Empress, BP’s Aristos 1, and Mitsubishi’s Diamond Gas Victoria – have diverted back to Asia to take advantage of these changing market conditions.
It noted: “We have seen at least a couple of cargoes switching back to Asia after initially diverting towards Europe, although the bulk of diversions in the last couple of weeks were towards Europe.”
Recent reports indicate that Nigeria’s weekly exports of liquefied natural gas (LNG) have experienced a consistent upward trend during the second half of this year, surpassing last year’s levels, except for a brief downtime in October 2024.
The increase can be attributed to higher domestic gas production, greater feedgas availability for LNG production, and the government’s efforts to bolster security around the nation’s oil and gas infrastructure.
According to Kpler data, Europe currently receives more than half of Nigeria’s total LNG exports.
In 2023, Nigeria exported 13.47 million tonnes (Mt) of LNG, marking a 10% decrease compared to the 14.61 Mt exported in 2022.
In line with its strategic vision of becoming a dynamic and reliable global energy supplier of choice, the Nigerian National Petroleum Company Limited (NNPC Ltd) has begun shipping LNG cargoes to Japan and China on a Delivered Ex-Ship (DES) basis.
NNPC Ltd’s collaboration with NNPC Shipping Ltd is expected to result in at least two more DES LNG cargo deliveries to the Asian market by November 2024.
The company further explained that the decision was taken in line with its strategic vision to be a dynamic and reliable global energy supplier of choice.
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