Economy Reports

Nigeria Loses 1.7 Billion scf/d of Gas and 1,200MW Power During PENGASSAN Strike

Nigeria’s energy supply was severely disrupted during the nationwide strike by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) with gas output dropping by 1.7 billion standard cubic feet per day and power generation reduced by more than 1,200 megawatts.

The industrial action, which commenced on September 28 following the dismissal of over 800 unionised workers at the Dangote Refinery, forced the shutdown of key facilities including the Oben gas plant and disrupted midstream networks.

The impact extended to Nigeria LNG where the restart of Train 5 and 6 was delayed, according to an assessment by the Nigerian National Petroleum Company Limited (NNPC).

The strike compounded risks to Nigeria’s energy security with NNPC warning that prolonged disruptions could materially threaten supply stability and revenue flows.

It noted that contingency measures were activated and non-union staff were deployed to sustain limited operations, but significant losses were still recorded from missed gas sales and curtailed power generation.

The action also affected export activities, with delays at terminals and deferred cargo loadings, while several critical project and maintenance schedules slipped.

The strike was suspended after government-mediated talks with Dangote management, bringing immediate relief to gas and power supply chains.

However, NNPC cautioned that systemic vulnerabilities remain within the sector, underscoring the fragile balance between industrial relations and national energy security.