Nigeria must be deliberate in its desire to take opportunities offered by the energy transition, the recognition of gas as a transition fuel and the quest for clean energy to increase its gas investment and harvest the gains, Managing Director and Chief Executive Officer of Nigeria LNG Limited (NLNG), Dr Philip Mshelbila, has said.
He said this recently during the visit of the Minister of State for Petroleum Resources (Gas), Honourable Ekperikpe Ekpo, to the NLNG plant on Bonny Island, Rivers State.
The minister was received by Dr Mshelbila; Nnamdi Anowi, General Manager, Production; Andy Odeh, General Manager, External Relations and Sustainable Development and other management staff.
Briefing the minister on NLNG’s operations and business, Dr Mshelbila stressed the need to overcome the challenges within Nigeria’s energy sector.
He stated that failure to address the root causes of these issues would perpetuate the country’s struggle with energy poverty and result in a significant loss of revenue from the monetisation of valuable resources.
He stated further that a pivotal starting point for remedying these industry challenges lies in a concentrated effort on the gas sector.
“Today, the biggest challenge we have, one that poses a threat not only to our existing operations but also to our expansion plans, is feed gas supply. Trains 1 to 6 currently operate at roughly 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. We have aspiration for Train 8 but we cannot progress that work because we have no line of sight as to where that 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,” he said.
Responding to the briefing, Ekpo said the Federal Government will continue to encourage engagements amongst stakeholders to resolve gas supply and security issues and restore plans to compete with peers in the world.
He stated that NLNG stands as a leading light to the Nigeria’s quest to become an energy-efficient country where clean energy, including gas, is utilised.
He stated further that all hands must be on deck to stop the loss of revenue in the sector and missed opportunities, adding that the Federal Government is engaging with investors to tap into the huge gas reserves in Nigeria.
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