– Plant operating at 50% capacity
Lagos — A lack of access to feed gas and the ongoing theft of crude oil have hobbled the expansion aspirations of the Nigeria Liquefied Natural Gas, NLNG Train 8, while Trains 1 to 6 are compelled to operate at 50 percent installed capacity.
Dr. Philip Mshelbila, the Managing Director of the Nigeria Liquefied Natural Gas Limited (NLNG) made the disclosure while receiving Ekperikpe Ekpo, the Minister of State for Petroleum Resources, Gas.
He disclosed that the gas supply inadequacy is a direct result of rampant crude oil theft, adding that this was impacting gas production and supply to the company.
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 government’s inability to tackle the root causes of crude oil theft would worsen Nigeria’s energy poverty and result in a significant loss of revenue from the monetisation of valuable resources.
“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 not only position us as one of the largest single-site operations globally but potentially among the top three worldwide in terms of such capacity at a single site.
“It is an achievement that elevates Nigeria’s standing, placing us among the top six nations in this crucial industry,” the NLNG boss noted.
The NLNG boss noted that recent events, such as the Russian/Ukraine conflict, have ushered in a wave of new developments in the LNG sector.
He said the surge in activity underscored the robust demand for LNG, 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, as other countries make substantial investments in LNG production. This is why we believe it is important for us to conclude Train 7 and begin to look beyond that for further expansion,” he added.
Responding, Ekpo said “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 laidback. They are constantly seeking ways out of this issue. NLNG needs all the necessary encourage to expand. 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,” he stated.
A statement released by NLNG’s Acting Manager, Corporate Communications and Public Affairs, Yemi Adeyemi further reiterated Mshelbila’s complaint about the lack of feed gas.
“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,” the statement quoted Mshelbila as saying.
“With innovation, collaboration by a wide array of stakeholders, including the government, and unwavering determination, we can shape the energy landscape of tomorrow, driving economic prosperity, creating jobs, and mitigating environmental challenges through gas.”
The minister was received by Mshelbila; the company’s General Manager, Production, Nnamdi Anowi; General Manager, External Relations and Sustainable Development, Andy Odeh, and other management staff, who all took a tour of the Central Control Room (CCR), the plant complex and the Train 7 construction site.
