Liquefied Natural Gas (LNG) exports from Nigeria have dropped by 13 percent, from 15.1 million tonnes in 2022 to 13 million tonnes in 2023, according to the latest 2024 World LNG Report by the International Gas Union (IGU).

The industry is experiencing a significant setback due to feedstock shortages, which have caused this 13 percent decline in exports.

As a result, Nigeria has fallen from sixth place to eighth in the global rankings, losing its spot to Indonesia and Algeria, which exported 15.6 million tonnes and 13 million tonnes of gas respectively last year.

“Nigeria, whose exports declined by 1.55 million tonnes, continues to face force majeure, plagued by low volumes of feedstock gas due to upstream disruptions,” the IGU stated.

The core issue is the dwindling natural gas supplies available for liquefaction. These feedstock shortages are attributed to various factors, including declining output from aging oil fields and pipeline vandalism that disrupts gas transportation.

According to the IGU, Nigerian LNG declared force majeure on some cargo loadings in October 2022, initially due to significant flooding across its upstream gas supply production regions, which necessitated the shutdown of several gas production wells.