By Our Correspondent
The Managing Director of Nigeria LNG Limited (NLNG), Dr Philip Mshelbila, says Nigeria should leverage the opportunities from energy transition by increasing its investment in gas to harvest huge gains.
Mshelbila gave the advise, on Monday, when the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, visited the NLNG plant on Bonny Island, Rivers State.
Briefing the minister on NLNG’s operations and business, Mshelbila stressed the need to overcome the challenges within Nigeria’s energy sector.
He noted that failure to address the root causes of the issues would perpetuate the country’s struggle with energy poverty.
It would result in a significant loss of revenue from the monetisation of valuable resources, the CEO of NLNG said.
He said a pivotal starting point for remedying these industry challenges lies in a concentrated effort in the gas sector.
“As we embark on the journey to complete Train 7, we are on the precipice of achieving a remarkable milestone – a capacity of 30 million tonnes per annum (MTPA).
“This accomplishment will position us as one of the largest single-site operations globally and potentially among the top three worldwide in terms of a single site.
“It is an achievement that elevates Nigeria’s standing, placing us among the top six nations in this crucial industry,” Mshelbila said.
The world, he notedt, is evolving at an unprecedented pace. And recent events like the Russian/Ukraine conflict, have ushered in a wave of new developments in LNG sector.
“This surge in activity underscores the robust demand for liquefied natural gas, a demand recognised by nations worldwide as integral to the global energy transition.
“Considering these dynamic changes, our position in the rankings is likely to shift rapidly. More so, as other countries make substantial investments in LNG production.
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“We believe it is important for us to conclude Train-7 and begin to further expand.”
According to him, the biggest challenge threatening NLNG today not only its existing operations but also its expansion plans, “is feed gas supply”.
“Trains 1 to 6 currently operate at half their potential capacity, a situation that has persisted for some time.
“The main issue behind the challenge is crude oil theft which affects associated gas supply.
“The plant is half-full, not because we don’t have the capacity but because the feed gas is not there,” he told the minister.
Mshelbila further hinted that NLNG has aspirations for Train-8. But it could not proceed because there is no where the gas will come from.
“We believe that the gas can only come from deep water gas but the terms for that must be addressed.
“At present, the production sharing contracts (PSCs) that govern deep-water exploration do not offer commercially viable terms for producers.
“Our commitment to harnessing the potential of natural gas will not only restore Nigeria’s reputation as a major energy powerhouse.
“It will also propel us towards a cleaner, greener future. With innovation, collaboration by all stakeholders, we can shape the energy landscape of tomorrow.
“We can drive economic prosperity, create jobs and mitigate environmental challenges through gas.”
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Responding, Ekpo assured the Federal Government would continue to encourage engagements amongst stakeholders to resolve gas supply and security issues.
The minister said NLNG stands as a leading light to Nigeria’s quest to become an energy-efficient country.
“The development of gas is something we should pursue vigorously. The present administration will do everything possible to address the issues.
“I am glad that the stakeholders in the sector, like NLNG, are not laid back. They are constantly seeking ways out of this issue.
“NLNG needs necessary encouragement to expand and it is for the good of this country.
“We must be quick to make these gains in development for the benefit of our future generations,” the minister said.
TheNewsZenith reports that the minister toured the Central Control Room, plant complex and the Train-7 construction site during the visit.
NLNG is owned by four shareholders, namely the Nigerian National Petroleum Company Limited with 49 per cent stake and Shell Gas B.V. with 25.6 per cent.
Others are TotalEnergies Gaz & Electricite Holdings with 15 per cent and Eni International N.A. N. V. S.àr.l with 10.4 per cent stake.
Dr Mshelbila; Nnamdi Anowi, General Manager, Production; Andy Odeh, General Manager, External Relations and Sustainable Development and other management staff received the minister on arrival.
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