Nigeria Liquefied Natural Gas Limited (NLNG) has expressed optimism that ongoing divestments by International Oil Companies (IOCs) from onshore and shallow water fields will enhance feedstock gas supply, allowing it to achieve production capacity.
Currently, NLNG’s gas feedstock supply only meets about 60 per cent of its potential output. Managing Director/Chief Executive Officer of NLNG, Dr. Philip Mshelbila, made this submission at the ongoing 42nd NAPE Annual International Conference & Exhibition held in Lagos.
Mshelbila, who was represented by the Manager of Plant Integrity Assurance at NLNG, Henry Wilcox, on the theme, ‘Management Session: Changing Dynamics in Nigeria’s Integrated Energy Sector: Impact on Sustainable Production and National Growth,’ said the primary constraint facing the company remains gas supply.
He stressed that the company relied on IOCs operating in the deepwater, independents, and other indigenous companies in the upstream sector to exploit the country’s natural gas reserves to evacuate more gas to their plants.
Mshelbila emphasised that the divestment presents an opportunity for increased local participation and ownership, which can drive economic empowerment, job creation, and the development of local expertise.
He added that Nigeria can unlock its gas resources’ full potential by investing in a resilient gas supply chain through pipeline network expansion, security measures, and a transparent regulatory framework in meeting domestic energy needs while contributing to climate goals.
“In each of the trains we’ve built, we secured commitments from our gas suppliers regarding their future investments and delivery. Yet, we continue to experience delays in gas delivery; I think the current divestment environment can be a great opportunity to address this issue.
“Initially, we were supplied by our shareholders Shell, ENI, and Total; but now we’ve shifted focus to third-party gas suppliers. We’ve recently signed agreements with ExxonMobil and are actively engaging with other third-party suppliers to diversify our gas sources,” he said.
He emphasised that in ensuring sustainable production and economic growth, there is a need to focus on the expansion and development of the oil and gas sector.
He added that the nation’s potential of 37 billion barrels of proven oil reserves and over 200 trillion cubic feet of natural gas must be transformed into opportunities for citizens as population growth and economic development will drive energy demand in the coming decade.
Also, the Nigerian Content Development and Monitoring Board (NCDMB) has said the nation is targeting 70 per cent of its content retention by 2027, noting that in seven years the country has moved from 26 per cent to 54 per cent.
The Executive Secretary, NCDMB, Felix Omatsola Ogbe, who was represented by the board’s General Manager, Corporate Communications, and Zonal Co-ordination, Esueme Dan Kikile, said the board is focused on fulfilling the mandate set out by the NOGICD Act 2010 to build the capacity of Nigerian companies and people to participate in the oil and gas industry.
Source: By Waliat Musa from guardian.ng