Nigeria is strengthening its position in Africa’s liquefied natural gas market as major producers across the continent push ahead with new projects and expansions. The developments come at a time when the International Energy Agency has reduced its forecast for global gas supply growth, pointing to tighter market conditions over the next few years.
Nigeria LNG’s Train 7 project on Bonny Island, Rivers State, is about 90 per cent complete and remains scheduled for commissioning in 2027. The $4.3 billion expansion is expected to raise NLNG’s production capacity by 35 per cent, from 22 million tonnes per annum to approximately 30 million tonnes. Government sources have said pre-commissioning activities are already under way.[1][2]
Further developments are also emerging in Nigeria’s floating LNG sector. UTM Floating LNG signed a 15-year wet-gas supply agreement with the NNPC–Seplat joint venture on 8 July, ahead of a final investment decision expected in the fourth quarter.
Other African gas producers are advancing projects of their own. In Mozambique, TotalEnergies has resumed work at its Afungi site in Cabo Delgado, with more than 4,000 workers returning after the project’s force majeure declaration was lifted. Construction is about 40 per cent complete, while the first LNG cargoes are expected in 2029. The project’s revised cost is estimated at roughly $20.5 billion.
Eni is also expanding its presence in Mozambique. Its Coral Sul floating LNG facility currently produces about 3.4 million tonnes annually, while the $7.2 billion Coral Norte project is expected to nearly double output when completed. ExxonMobil, meanwhile, is working toward a final investment decision on its Rovuma development in the same province.
Tanzania is continuing discussions with Shell and Equinor over the proposed $42 billion Likong’o-Mchinga LNG project. These developments reflect a wider effort by African producers to convert their substantial gas reserves into export earnings, industrial investment and greater energy security.
The projects are moving forward against a changing global market outlook. The IEA has cut its projected gas supply growth for 2026 to 2030 by about 120 billion cubic metres after damage to liquefaction infrastructure in Qatar reduced expected global production. The disruption has intensified competition among Asian buyers, pushed up prices and prompted gas rationing in some markets.
Although new liquefaction facilities elsewhere are expected to compensate for part of the shortfall over time, the IEA expects supply conditions to remain tight through 2026 and 2027. The agency has therefore stressed the need for sustained investment across the LNG value chain and closer cooperation between gas producers and consumers.
For African projects, the tighter outlook could improve the prospects for long-term supply agreements. Buyers seeking to protect themselves from price volatility may increasingly favour diversified portfolios that include long-dated contracts from emerging LNG producers such as Nigeria, Mozambique and Tanzania.
However, the timing of these projects remains important. Nigeria’s Train 7 has been under development for several years, while Mozambique’s restart and the approval of Coral Norte predate the latest changes in the global market. What has shifted is the commercial environment into which these projects will eventually deliver their first cargoes.