Managing Director and Chief Executive Officer of Nigeria LNG Limited (NLNG), Dr. Philip Mshelbila, has decried losses suffered by the company to insecurity on gas assets.
Speaking at the opening ceremony of the Nigeria International Energy Summit (NIES) in Abuja yesterday, the NLNG MD said the company has been unable to meet global demands for its products due to operational challenges caused by insecurity.
Recall that European countries committed to reduce reliance on Russian Gas supplies following the invasion of Ukraine. The European Union (EU) aims to cut supplies and become independent of all of Russia’s fossil fuels by 2030. Africa and specifically Nigeria had been tipped as one of the countries to benefit from the EU’s shift in energy policy to be a major supplier to the EU.
“Right now, I am only running two trains out of six and the reason I do that is because three of our gas supply pipelines are down. We are repairing illegal connections from thieves and it has affected the biggest lines supplying NLNG with gas,” He said.
Continuing, he said, “Energy security has to be as important as national security. We know we have seen improvements in oil, we have seen a deterioration where gas is concerned. So until we are able to protect the lines and to provide the security for those investments, we will always underperform.”
“Since the Russia-Ukraine war, I have been approached by dozens of Europeans and other customers looking for LNG and we have been unable to supply. We can’t compete due to these challenges,” he lamented.
Speaking further, Dr. Philip Mshelbila praised the Federal Government for conceptualising the company describing it as a smart move made 60 years ago.
“The concept of an LNG was a wisdom by the Nigerian Government about 60 years ago. It took 30 years before the first investment was made and we began various trains. However, after Train 6, we had a brief hiatus until an FID was taken on Train 7 in 2019.”
The NLNG MD further attributed the company’s success in attracting investments to its governance structure and public-private partnership model.
He lauded the Government for putting in place an enabling environment which has fostered investments for the company.
He said this is more evident in the company’s current Train 7 project as it has been overwhelmed by the number of interests from stakeholders.
Meanwhile, Minister of State Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo also speaking at the event said Nigeria’s gas sector has witnessed significant transformation under the administration of President Bola Tinubu.
Ekpo argued that there is substantial progress made in gas infrastructure development, policy reforms, gas utilisation, and domestic initiatives, marking a remarkable turnaround for the sector.
This is as he commended the Nigerian National Petroleum Company Limited (NNPCL) and private sector partners for their investments in mini Liquefied Natural Gas (LNG) projects in the country.
The partnership has seen the establishment of five mini LNG plants – Prime LNG Plant, BUA LNG, Highland LNG, NGML/GasNexus LNG, and LNG Arete in Ajaokuta, Kogi State – all designed to accelerate Nigeria’s industrialisation, economic growth, and prosperity by taking gas from existing pipelines, liquefying it, and transporting it to far-reaching areas, especially in the Northern Region.
Ekpo equally praised NNPCL’s GCEO, Malam Mele Kyari, for his commitment to replicating these mini LNG projects across all geopolitical zones of the country in line with President Tinubu’s initiatives to drive the economy using natural gas.
Said Ekpo, “The Federal Government is attracting investment in LNG, CNG, and gas-to-chemicals, and by fostering a business-friendly environment, Nigeria is building a sustainable gas ecosystem that drives industrialisation, job creation, and energy security, ensuring a cleaner and prosperous future.”
The Gas Minister who was also on the ministerial panel during the event reaffirmed the government’s commitment to the Decade of Gas initiative, launched in 2021, which aims to position Nigeria as a leading gas-powered economy by 2030 through infrastructure expansion, increased domestic utilization, and export growth. Key projects include pipeline development, gas-based industries, and gas-to-power initiatives.
He said in response to the 2023 fuel subsidy removal and subsequent petrol price surge, the government initiated a nationwide compressed natural gas (CNG) programme to provide cost-effective and environmentally friendly transportation alternatives.
“With over 100,000 vehicles targeted for conversion and a $200 million investment in CNG infrastructure, this programme is crucial in reducing transportation costs and promoting energy sustainability,” said Ekpo.
The Obrikom, Obiafo, Oben (OB3) and Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline projects remain flagship initiatives in Nigeria’s national gas expansion drive, according to Ekpo.
He said the AKK pipeline, spanning 614 kilometers, is expected to enhance gas supply to key industrial and commercial hubs across Nigeria.
“With an expected completion date of 2025, this $2.8 billion initiative will stimulate industrialisation, create jobs, and attract investments in manufacturing and power generation.”
