The Managing Director and Chief Executive Officer of Nigeria Liquefied Natural Gas (NLNG) Limited, Dr. Philip Mshelbila, disclosed that only two out of the company’s six gas trains are currently operational, citing persistent pipeline attacks by vandals as the primary cause of the operational setbacks.
Speaking at a panel session during the ongoing Nigeria International Energy Summit in Abuja on Wednesday, Dr. Mshelbila expressed his dismay over the significant losses the company has endured due to the insecurity surrounding its gas infrastructure.
“These attacks have made it increasingly difficult for NLNG to meet the growing global demand for liquefied natural gas,” he said.
“At present, I am only running two trains out of six,” Dr. Mshelbila lamented.
He elaborated that three of the company’s crucial gas supply pipelines—GTS 1, GTS 2, and GTS 4 are currently down for repairs due to illegal connections by thieves, further crippling the company’s operations.
“These are critical lines that supply the energy needed for our operations.
We are suffering significant setbacks,” he noted.
Dr. Mshelbila also called for a broader reevaluation of energy security, stating that while strides have been made in securing oil infrastructure, gas security remains a growing concern.
“Energy security must be regarded as important as national security.
However, the situation for gas security has worsened, and until we can safeguard these pipelines, we will continue to fall short,” he warned.
The NLNG CEO highlighted the impact of this insecurity on Nigeria’s ability to meet LNG supply requests from countries such as those in Europe, with the country unable to compete due to the ongoing security challenges.
“Nations like Qatar and the U.S. are in a stronger position, and we are losing out on key opportunities because of the security issues we face,” he added.
The insecurity surrounding the gas pipelines has had a tangible effect on Nigeria’s LNG exports.
Earlier this year, Nigeria experienced a 20% decline in LNG exports, largely attributed to the destruction of key pipelines by suspected vandals.
As a result, planned shipments for next month are expected to face delays of at least 10 days.
Despite these challenges, Dr. Mshelbila acknowledged the Nigerian government’s efforts in creating an enabling environment that has attracted significant investments to NLNG, notably in the development of the Train 7 project.
“Train 7, a $5 billion investment, showcases the success of the public-private partnership model,” he said.
“We’ve been overwhelmed by the interest from investors, which reflects the strong governance and structure of the company,” he added, emphasizing the importance of the project as a beacon for future investments in Nigeria’s energy sector.
However, he also pointed out that while NLNG has benefitted from this model, the broader Nigerian economy still faces substantial investment challenges, particularly regarding energy security.
Dr. Mshelbila echoed calls from other industry experts for the government to prioritize energy security as a national priority.
Olu Verheijen, Special Adviser to the President on Energy, also praised NLNG’s success, calling it a model for the energy sector in Nigeria.
She emphasized the importance of transparent governance, financial rigor, and the establishment of clear commercial processes to attract further investment into the sector.
“The NLNG model is one we should replicate for sustainability in the sector,” Verheijen said.
“Stable companies with clear governance that meet commercial and financial criteria will help attract capital to address the nation’s energy needs,” Verheijen continued.
However, she reiterated that security remains a significant challenge, calling on all stakeholders to address the growing concerns surrounding energy infrastructure security across Nigeria.
