Insecurity Limiting NLNG From Meeting Global Gas Demand, MD Laments

The Managing Director and Chief Executive Officer of Nigeria Liquefied Natural Gas Limited, Dr Philip Mshelbila, has said the level of vandalism of its pipelines is limiting the ability of the company to meet gas demand from the global market.

He disclosed this at a panel session during the ongoing Nigeria International Energy Summit on Wednesday in Abuja,

This is just as he revealed that only two of the company’s six gas trains are currently operational.

The NLNG boss attributed the operational challenges to persistent attacks on its gas pipelines by vandals.

Mshelbila decried the significant losses suffered by NLNG due to the insecurity surrounding its gas assets.

He added that the company has struggled to meet global demand for liquefied natural gas because of the damage caused by illegal pipeline connections.

THE WHISTLER had on February 3, this year reported that NLNG Nigeria recorded a decline in gas exports by over 20 per cent, following frequent attacks on its pipeline infrastructure by vandals.

The attack, which was described by the company as unprecedented, had led to a huge decline in the country’s gas exports and a massive loss of revenue.

The act of sabotage and vandalism has affected gas supplies to its plant, a development that is currently affecting scheduled shipments.

In 2023, Nigeria’s Liquefied Natural Gas exported 17.5 billion cubic meters of liquefied natural gas (LNG). A 20 per cent decrease in exports as a result of vandals implies that supplies had been reduced by about 3.5 billion cubic meters.

Speaking on the development on Wednesday in Abuja, the NLNG Boss, “In the current moment, I am only running two trains out of six.

“Three of our gas supply pipelines are down for repairs due to illegal connections by thieves. These are critical lines—GTS 1, GTS 2, and GTS 4—that supply the energy required for our operations.”

The NLNG boss also called for a reevaluation of energy security, highlighting that while progress has been made in securing oil infrastructure, the situation for gas is becoming precarious.

“Energy security has to be seen as important as national security. However, gas security has deteriorated, and until we can safeguard these pipelines, we will continue to underperform,” he said.

He noted that numerous European countries and others have approached Nigeria for LNG supplies but that the country has been unable to meet these requests.

“Countries like Qatar and the U.S. are in a stronger position, and we are unable to compete due to the security challenges we face,” he added.

He lauded the public-private partnership model that has driven the success of the company, notably in the development of the Train 7 project.

“Train 7, a $5bn investment, is an example of the success of this model. We’ve been overwhelmed by the interest shown by investors, which is a positive reflection of the company’s governance and structure,” he said.

The Special Adviser to the President on Energy, Olu Verheijen, also commented on NLNG’s success, calling it a model for the energy sector in Nigeria.

She emphasised the importance of transparent governance, financial rigour, and the need for clear commercial processes to attract investment.

Insecurity Limiting NLNG From Meeting Global Gas Demand, MD Laments is first published on The Whistler Newspaper