• Firms readying for net-zero future

Sopuruchi Onwuka

Realization of government’s revenue and sundry economy goals in the gas industry remain vulnerable in the face of incessant vandalism on gas supply infrastructure and other facilities that support capacity optimization at the process plants of the Nigeria Liquefied Natural Gas (NLNG) Limited.

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Currently, the company which is the second highest revenue earner for the government and major contributor the country’s gross domestic productivity is suffering severe feedgas disruptions, insecurity other vices that impair its capacity to optimally deliver cargoes to the international markets.

Managing Director of the company, Dr Phillip Mshelbila, and his deputy, Olakunle Osobu, separately lamented myriad of issues in the operating environment which they say is threatening ability of the company to deliver assigned economic mandates in the gas industry.

Dr Mshelbila and Mr Osobu stated at different sessions of the Nigeria International Energy Summit (NIES) that nation’s leading gas exporter now suffers high capacity redundancy arising from frequent downtimes.

The Oracle Today reports that the LNG business is governed by long term Gas Supply Agreements (GSAs) which commits the producers to deliver agreed cargoes at mainly international destinations on schedule. Defaults come with huge financial consequences unless in the cases of force majeure.

However, force majeure is classic pointer to unstable operating environment and unreliable supply source.

Speaking on key bottlenecks hindering Africa’s energy and industrial growth, Osobu demanded stakeholders in the industry to assist address the underutilization of the country’s gas liquefaction capacity, pointing out that the company is seriously challenged with severe hindrances in the operating environment.

He listed security concerns; feedgas supply disruptions, regulatory uncertainties, and inadequate local infrastructure key setbacks that beset businesses in the operating environment.

To enable the country attract global investors and accelerate energy transformation, Osobu called for policy reforms, increased investments in technology, and improved security arrangements.

He however pledged NLNG’s commitment to sustain Africa’s competitive footprint in the global gas trade; and to continue investing in sustainable solutions that support Nigeria’s energy security and economic growth.

He also reiterated the company’s focus on reducing carbon emissions to meet evolving market expectations in line with the aspirations of the continent to harness its vast energy potential to drive economic growth and industrial evolution.

Osobu stated that NLNG’s multifaceted strategy for energy transition included incorporating Carbon Capture and Storage (CCS) technologies, harnessing renewables, implementing a comprehensive Greenhouse Gas and Energy Management Plan, and modernising its LNG carrier fleet to enhance fuel efficiency and reduce carbon emissions

He disclosed that NLNG has embarked on a fleet renewal initiative, as part of its commitment to operational efficiency, incorporating modern LNG carriers such as the Company’s chartered vessels, LNG AKTORAS and LNG AXIOS II. These state-of-the-art vessels replaced older steam-powered ships, significantly reducing carbon emissions, enhancing fuel efficiency, and reinforcing NLNG’s leadership in value-chain decarbonisation.

He emphasized the need for innovative strategies to overcome challenges and unlock opportunities in Africa’s energy sector, pointing at liquefied natural gas (LNG) and domestic gas solutions as enablers of Africa’s energy transformation. With the completion of Train 7, he said NLNG was already considering the development of an eighth train to further solidify its position as a top global LNG producer.

Highlighting innovative financing models, Osobu advocated for blended financing through public-private partnerships (PPPs), sovereign wealth funds, and development finance institutions like the World Bank, IFC, and Afreximbank. He also underlined the importance of green and transition bonds in funding low-carbon LNG projects and efficiency upgrades.