Uche Cecil Izuora
The U.S. Trade and Development Agency (USTDA) is funding a feasibility study to support the development of a small-scale LNG plant in southern Nigeria.
The project is designed to supply liquefied natural gas to industrial customers and remote communities in northern Nigeria through a virtual pipeline distribution network.
The support to boost domestic supply is coming as Nigeria’s Liquefied Natural Gas (LNG) exports rose by one million metric tonnes (Mt) in 2025 to 14.78 Mt.
The export is valued at N20.0 trillion from 13.78 Mt in 2024, valued at N18.89 trillion, reinforcing its position among the world’s leading LNG suppliers as global trade climbed to a record 436.98 Mt, according to the 2026 World LNG Report.
The study, to be conducted for Nigerian energy company Powergas Nigeria Ltd., will evaluate the technical and financial feasibility of the proposed LNG facility, develop an implementation plan and identify U.S. suppliers for key equipment, including liquefaction systems, electrical controls and engineering services.
The project is intended to expand energy access in areas that lack traditional natural gas pipeline infrastructure by transporting LNG via truck to end users.
USTDA Deputy Director Thomas Hardy said the study is intended to support both Nigeria’s energy needs and opportunities for U.S. LNG technology providers.
“This project will help address critical energy security needs in a region where underinvestment in infrastructure has impeded economic opportunity,” Hardy said.
“At the same time, our support for this project will open new opportunities in Nigeria for America’s LNG industry.”
Powergas said the project would build on its existing compressed natural gas (CNG) operations by expanding into LNG distribution for customers beyond the reach of pipeline infrastructure.
“LNG is our natural next frontier, seeing that it allows us to go further and serve even more remote industries and communities,” said Abiodun Oseni, the company’s head of strategy.
According to Powergas, the feasibility study is expected to improve the project’s bankability while supporting procurement of U.S.-manufactured liquefaction technology and engineering services.
USTDA said the study is intended to lay the groundwork for project financing and future deployment of U.S. LNG technologies in Nigeria’s growing energy market.
Based on the current global LNG price of about $990 per metric tonne, Nigeria’s 14.78 million metric tonnes of LNG exports in 2025 had an estimated market value of $14.63 billion, translating to approximately N20.06 trillion at the prevailing official exchange rate of N1,371 per US dollar. Similarly Nigeria’s 13.78 million metric tonnes of LNG exports in 2024 had an estimated market value of $13.78 billion, translating to approximately N18.89 trillion.
The report showed that Nigeria accounted for 3.4 per cent of global LNG exports in 2025, ranking seventh among the world’s largest exporters behind the United States, Qatar, Australia, Russia, Malaysia and Indonesia.
Nigeria’s improved performance also helped lift Africa’s total LNG exports by 1.8 Mt to 39.77 Mt during the year, despite lower shipments from Algeria and Egypt.
Globally, LNG trade expanded by 25.74 Mt, or 6.3 per cent, to a record 436.98 Mt in 2025, driven mainly by increased exports from the United States, Qatar, Malaysia, Angola and Nigeria.
The report stated: “The 25.74 Mt increase in 2025 LNG trade was driven by rising output from the United States (+22.3 Mt), Qatar (+4.3 Mt), Malaysia (+1.1 Mt), Angola (+1.1 Mt), and Nigeria (+1.0 Mt).”
Nigeria exported 14.78 Mt of LNG in 2025, up from about 13.78 Mt recorded in 2024, consolidating its position as one of Africa’s largest LNG exporters.
Only the United States, with 110.74 Mt, Qatar with 81.51 Mt, Australia with 80.32 Mt, Russia with 30.52 Mt, Malaysia with 28.80 Mt and Indonesia with 16.55 Mt exported more LNG than Nigeria during the period.
Within Africa, Nigeria remained a key growth driver alongside Angola, whose exports increased by 1.1 Mt, while new production from the Greater Tortue Ahmeyim project enabled Mauritania and Senegal to record their first LNG exports of 1.22 Mt.
Nigeria’s improved export performance comes as the country seeks to expand gas production and monetisation under its “Decade of Gas” initiative while increasing foreign exchange earnings from natural gas.
The higher exports suggest improved utilisation of existing LNG infrastructure despite persistent challenges facing domestic gas supply, pipeline security and upstream investment.