Criminal gangs in Nigeria have shifted their focus from oil pipelines to gas conduits, tapping into them to steal valuable condensate. This dangerous practice has severely reduced exports from Africa’s largest liquefied natural gas plant.
For decades, thieves have targeted the oil pipelines that run through Nigeria’s Niger Delta region. But a recent government crackdown on crude theft has pushed these groups toward gas pipelines, where they extract condensate—an ultra-light form of oil that’s easier to process in makeshift refineries than crude oil.
“It is a very high-risk, very dangerous operation, that’s not always successful. But when it’s successful, they make a lot of money,” explained Effiong Okon, managing director of ANOH gas plant, a Seplat Energy subsidiary operating a $700 million gas project in the area.
This surge in illegal tapping has drastically reduced gas supply to Nigeria LNG Ltd. (NLNG), a joint venture owned by Nigeria, TotalEnergies, Shell, and Eni. NLNG’s exports fell dramatically in February, according to commodities tracking company ICIS. That month, the plant received only one-fifth of its needed gas supply, forcing it to shut down processing units.
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Nigeria’s global LNG market share has been steadily declining, dropping from 6% in 2020 to 3.5% last year, according to BNEF. While five of NLNG’s six production units are back in operation, experts warn that a prolonged disruption could significantly impact global gas markets.
The theft comes as Nigeria plans to boost condensate production, which doesn’t count against the oil-production quota it agreed to as an OPEC member. The country aims to reach a combined output of 3 million barrels per day—half of which would be condensate—according to Minister of State for Petroleum Heineken Lokpobiri.
President Bola Tinubu’s administration has implemented aggressive security measures to protect oil pipelines since taking office in May 2023. These include using drones and fighter jets to bomb illegal refining sites, while on the ground, private security firms run by former militants help guard the main crude lines. These efforts have increased oil output by more than 40% from three years ago.
“Improved security at the oil pipelines is pushing criminals in other directions,” noted Salahuddeen Tahir, head of assets and investments management at NNPC Gas & Power Investment.
Unlike past crude thieves who used basic tools, today’s gas pipeline thieves appear to have more sophisticated engineering skills—necessary given the heightened dangers. “These pipelines operate at high pressure, and any rupture poses a significant risk of explosion or uncontrolled fire,” warned Claudio Steuer, a senior research fellow at the Oxford Institute for Energy Studies.
The stolen condensate can sell for prices comparable to Nigeria’s expensive crude grades like Forcados and Bonny Light. It’s easily refined or used directly in generators and is sold openly on the streets of southern cities such as Port Harcourt and Aba.
While the government claims to be addressing these attacks, specific details remain limited. NLNG has stated it’s working with government agencies “to strengthen the security of upstream production and transmission assets.”
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