Durrant Pate/Contributor

Nigeria, the largest exporter of liquefied natural gas (LNG) in Africa is seeing Jamaica as a promising new trading partner for the fuel commodity.

This comes as Nigeria is deepening its foothold in the Caribbean energy market. Jamaica recorded higher LNG imports in 2024, driven primarily by Nigeria and Mexico, the Gas Exporting Countries Forum (GECF) is reporting. However, the forum did not make the figures known.

Data from the International Trade Centre’s Trade Map platform revealed a notable uptick in Nigeria’s LNG exports to Jamaica. The BusinessDay, the premier provider of business and financial intelligence insight in West Africa, reports that this signals a budding energy relationship between Africa’s top gas producer and the Caribbean island nation.

Nigeria exported LNG worth US$160.6 million to Jamaica in 2023, making it the second-largest supplier of LNG to the Caribbean country after the US. It is a record high since Nigeria entered the Jamaican market nine years ago. Further analysis showed that Nigeria holds a 39.53 per cent market share of the Jamaican LNG import market in the period, a development that further increased in 2024, according to the GECF. 

Jamaica’s LNG imports up significantly

A senior industry player told The BusinessDay, “Jamaica’s LNG imports were up significantly year-on-year and may be attributed to higher gas demand in the electricity sector.” Nigeria, Africa’s top LNG exporter, has raked in over US$40 billion in the last eight years, spreading the country’s market share across the globe, according to data gleaned from Trade Map.

The BusinessDay reports that, “despite the rife in the Jamaican LNG market, Nigeria recorded a decline in exportation on the back of a force majeure on the Bonny LNG facility that has led to the unavailability of feed gas for LNG exports.” According to the GECF, “the fall in Nigeria’s LNG exports was due to lower feed gas availability for LNG exports. The force majeure on the Bonny LNG facility declared in October 2022, following widespread flooding, has remained in place.” 

Jamaica’s growing natural gas consumption

Jamaica’s natural gas consumption has been relatively modest compared to global standards, driven by the need to improve electricity distribution and coverage. Recent data shows that the country consumes approximately 6,961 million cubic feet (MMcf) of natural gas annually, ranking 114th in the world for natural gas consumption. 

This accounts for about 0.005 per cent of the world’s total natural gas consumption. Jamaica does not produce natural gas domestically and relies entirely on imports to meet its demand but the country’s natural gas usage is primarily focused on electricity generation and industrial applications as part of its broader energy diversification strategy.

Jamaica has been making strides in its gas-to-electricity transition, with natural gas becoming an increasingly vital part of the country’s energy mix. This shift is largely driven by investments in LNG infrastructure and power generation facilities in the country.

Jamaica investing in LNG infrastructure 

In the last ten years, Jamaica has invested in LNG infrastructure expansion, power generation and has been involved in major acquisition deals to drive the growth among others. Over the years, the country has established LNG import terminals in Montego Bay and Old Harbour, which are critical for supplying natural gas to power plants.

In addition, Jamaica has integrated natural gas into its electricity generation, reducing reliance on oil-based fuels. This transition has improved energy reliability and lowered costs. 

Excelerate Energy recently acquired Jamaica’s downstream LNG and power infrastructure from New Fortress Energy for over US$1 billion. This move is expected to enhance the efficiency and growth of Jamaica’s gas-to-electricity sector.