NLNG targets 2027 start‑up for $10 bn Train 7 LNG expansion
Nigeria’s NLNG says its new Train 7 LNG facility will be operational by end‑2027, expanding capacity to 30 mtpa and aiming to lift force‑majeure once utilization hits 90 %.
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Desk Analysis
How This Affects the Exchange
Sector Effect
Positive · Buy bias
Expanded LNG supply could lower fuel costs for Pakistan's power sector, prompting a Buy bias on related tickers.
Sectors & Direction
Desk read
Desk call: Buy bias · Positively affected
- PowerPositively affected
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Mentions in This Briefing
Sectors: Power — Positive · Buy bias. PSX tickers: HUBC, POL. Expanded LNG supply could lower fuel costs for Pakistan's power sector, prompting a Buy bias on related tickers.
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Open on Business Recorder## NLNG’s Train 7 timeline
Nigerian LNG producer NLNG announced at the Gastech conference in Bangkok that the $10 billion Train 7 project on Bonny Island is slated to start up by the end of 2027. The new train will raise the company’s export capacity from 22 million to 30 million metric tonnes per year.
## Delays and current operations
The project has suffered repeated setbacks, most recently due to the COVID‑19 pandemic and the Ukraine war. In addition, a force‑majeure imposed in 2022 after severe flooding continues to limit output. NLNG’s plant is currently running at about 82‑83 % utilization and will lift the force‑majeure once it reaches a 90 % utilization threshold.
## Supply constraints and market outlook
Managing Director Adeleye Falade said the main hurdle remains gas feedstock. NLNG is working with the Nigerian government and other stakeholders to secure additional gas supplies. He noted a growing interest in spot LNG cargoes after exports through the Strait of Hormuz were disrupted by the Iran‑Israel conflict, with buyers seeking diversified and reliable sources.
## Ownership and partners
NLNG is majority‑owned by the Nigerian National Petroleum Company. Its foreign partners include Shell, TotalEnergies and Eni. The company remains committed to fulfilling existing contractual obligations to its customers while maximising production opportunities.
## Implications for Pakistan
An increase in global LNG supply could ease price pressures on Pakistan’s LNG‑dependent power sector, supporting generation capacity and potentially stabilising the PKR. Investors may view this development as favourable for locally listed power generators and LNG traders.