LNG - Liquified natural gas tanker with gas tanks powered with h2 hydrogen engines on the ocean, essentail deliver LNG.
Nigeria’s revenue from liquefied natural gas (LNG) is set to rise in 2026 as global output increases, easing the supply constraints that followed the 2022 Ukraine war. Analysts say the boost could spur demand from top importers like China and India.
Global LNG supply is expected to expand until 2029, which may lower prices but also encourage purchases from emerging economies. Kpler, a market analytics firm, said 2026 “is expected to be a transitional year for the LNG market, moving from tight supply to ample availability, even during Europe’s winter demand.”
Nigeria’s LNG exports rebounded in late 2025, hitting a five-year high of 2.1 billion cubic meters in December, driven by improved gas supply and plant efficiency, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
New projects like Nigeria LNG Train 7 and infrastructure upgrades, including the Obiafu-Obrikom-Oben (OB3) pipeline, are expected to further increase output, strengthening Nigeria’s position as Africa’s top gas exporter. Nigeria’s proven natural gas reserves stand at over 210 trillion cubic feet (Tcf), the largest in Africa, giving the country a strategic role in global supply.
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Global LNG capacity is set to rise by up to 10% in 2026, with major contributions from the U.S., Qatar, Canada, and Senegal. Analysts predict average Asian spot LNG prices could drop to $9.50–$9.90 per million British thermal units (mmBtu), down from $12.45 in 2025. European gas prices are also expected to fall, narrowing spreads with the U.S. benchmark and squeezing margins for exporters.
China and India are expected to lead demand growth, with Chinese imports projected to rise by 6–7 million tons and India by 5 million tons. Europe will also absorb more LNG, with imports forecast to increase by 13–22 million tons as countries phase out Russian gas and meet higher storage needs.
Nigeria, which exported around 5–8% of global LNG in early 2025, is poised to expand its output from 22 to 30 million tons per year with the Train 7 project and new supply contracts. Analysts say this could cement Nigeria’s role as a key supplier in a changing global LNG market.
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