Shell’s 12 Million Tons LNG Output Target Keys Into NLNG Expansion

Oil giant Shell has strategically placed its new gas production target in line with Nigeria’s ambitious plan to boost production capacity along similar space. Shell hopes to deliver significant volume to the Nigerian Liquified Natural Gas Limited (NLNG) which is pursuing output growth strategy as it targets an annual output of 12 million tons by 2030. The Anglo-Dutch multinational is leveraging its global gas footprint to meet rising demand, especially from Asia. Head of Shell’s Integrated Gas Division, Cederic Cremers, who confirmed the plan highlighted Nigeria as one of the company’s key markets alongside Qatar, the UAE, and Canada.

A central component of Shell’s plan is the expansion of the Nigeria LNG (NLNG) plant in Bonny Island, where Shell holds a 25.6 per cent stake. The ongoing project aims to increase the facility’s capacity from 22 to 30 million tons per year. The new liquefaction unit, known as Train 7, will contribute about 4.2 million tons annually toward Shell’s global production target. In addition to export capacity, Nigerian gas plays a role in domestic industrial supply. Shell has signed agreements to provide gas to the Dangote fertilizer complex and the Brass Fertilizer project in Bayelsa State. The company also plans to invest $1 billion to boost its upstream gas production in Nigeria.

Shell delivered nearly 65 million tons of LNG to over 30 countries in 2024. The company is counting on Nigerian projects to help meet a forecasted 40 per cent rise in global LNG demand over the next 15 years, driven by Asia’s energy needs, digital expansion, and decarbonization efforts. As part of its portfolio shift, Shell finalized the sale of its 30 per cent stake in Nigeria’s oil and gas joint venture SPDC to the Renaissance consortium in March.