The Managing Director and Chief Executive Officer of Nigeria Liquefied Natural Gas Limited, Philip Mshelbila, has disclosed that only two out of the company’s six gas trains are currently operational due to relentless attacks on its pipelines by vandals.
Speaking at a panel session during the ongoing Nigeria International Energy Summit on Wednesday in Abuja, Mshelbila lamented the severe losses NLNG has suffered, stressing that insecurity around its gas assets has hindered its ability to meet global demand.
“In the current moment, I am only running two trains out of six,” he said.
He further explained that three of the company’s critical gas supply pipelines GTS 1, GTS 2, and GTS 4 are undergoing repairs due to illegal connections by thieves.
“These are critical lines that supply the energy required for our operations,” he added.
Mshelbila underscored the need to prioritize energy security, warning that while efforts have been made to safeguard oil infrastructure, the situation for gas remains precarious.
“Energy security has to be seen as important as national security. However, gas security has deteriorated, and until we can safeguard these pipelines, we will continue to underperform,” he said.
According to him, Nigeria has struggled to meet requests from European and other countries for LNG exports, leaving competitors like Qatar and the U.S. in a stronger position.
The insecurity has also significantly impacted Nigeria’s LNG exports. Earlier this year, the country recorded a 20% decline in exports following pipeline destruction by vandals. This has further led to shipment delays of at least 10 days for next month.
Despite these setbacks, Mshelbila commended the Nigerian government for fostering an environment that has attracted substantial investments into NLNG. He pointed to the Train 7 project, a $5 billion investment, as a success story of the public-private partnership model.
“We’ve been overwhelmed by the interest shown by investors, which is a positive reflection of the company’s governance and structure,” he said, emphasizing that the project serves as a beacon for future energy investments.
However, he acknowledged that broader investment challenges persist in Nigeria’s energy sector, particularly concerning security.
Special Adviser to the President on Energy, Olu Verheijen, also weighed in on NLNG’s achievements, describing it as a model for the industry.
“The NLNG model is one we should replicate for sustainability in the sector. Clear governance and stable companies that meet commercial and financial criteria will help attract capital to address the nation’s energy needs,” Verheijen stated.
She, however, noted that security remains a major barrier, urging stakeholders to find lasting solutions to the challenges affecting the country’s energy infrastructure.
