The Managing Director and CEO of Nigeria Liquefied Natural Gas (NLNG) Limited, Dr. Philip Mshelbila, has disclosed that only two of the company’s six gas trains are operational, primarily due to persistent attacks on its pipelines by vandals.
These disruptions have led to significant losses for the company and hindered its ability to meet global demand for liquefied natural gas (LNG).
Speaking at the Nigeria International Energy Summit in Abuja on Wednesday, Dr. Mshelbila explained that three critical gas supply pipelines—GTS 1, GTS 2, and GTS 4—are currently down for repairs because of illegal connections by thieves.
These pipelines are essential for the company’s operations, and the attacks have created a severe bottleneck in NLNG’s production capacity.
“In the current moment, I am only running two trains out of six,” Mshelbila lamented.
“We are facing serious challenges due to these pipeline attacks, and it has greatly impacted our ability to meet international demand for LNG.”
He further emphasised the importance of rethinking energy security, noting that while progress has been made in securing oil infrastructure, the same level of attention has not been given to gas security.
“Energy security should be as important as national security,” he stated.
“Gas security, however, has deteriorated. Until we can safeguard these pipelines, we will continue to underperform.”
The vandalism has not only affected NLNG’s operations but also hampered Nigeria’s LNG exports. Earlier this year, the country saw a 20% decline in LNG exports due to pipeline destruction, and delays of at least 10 days are expected for upcoming shipments.
Dr. Mshelbila also highlighted the international impact of the pipeline attacks. Countries in Europe and beyond have shown interest in importing LNG from Nigeria, but the country’s inability to meet these requests due to security challenges has left it unable to compete with stronger producers like Qatar and the United States.
“Countries like Qatar and the U.S. are in a stronger position to meet LNG demand, while we are unable to capitalize on these opportunities due to the security challenges surrounding our gas infrastructure,” Mshelbila remarked.
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Despite these setbacks, Mshelbila praised the Nigerian government for its efforts to create a favorable environment for investments in NLNG, particularly in the successful development of the Train 7 project, a $5 billion investment.
He noted that the public-private partnership model has proven successful, bringing in significant investor interest.
“Train 7 is a reflection of the success of this model. It has attracted overwhelming investor interest, which speaks to the sound governance and structure of the company,” he said.
However, he also noted that while NLNG’s success serves as a model, the broader Nigerian economy faces significant challenges, especially in securing energy infrastructure and attracting investments.
The Special Adviser to the President on Energy, Olu Verheijen, echoed Dr. Mshelbila’s sentiments, emphasizing the importance of transparent governance and financial rigor in attracting investment to Nigeria’s energy sector.
She highlighted that the NLNG model, built on clear governance and stable companies, should be replicated to address the nation’s energy needs.
“The NLNG model is one that we should aim to replicate. Companies with clear governance and commercial processes will help attract the capital needed to address our energy needs,” Verheijen said.
Despite these positive developments, she cautioned that the security challenges surrounding Nigeria’s energy infrastructure need urgent resolution to ensure the sector’s continued growth and sustainability.
