By Solomon OKPO | The Evangelist Oil /Gas Desk
President Bola Ahmed Tinubu has charged the Nigeria Liquefied Natural Gas (NLNG) to intensify efforts to convert Nigeria’s gas resources, particularly gas currently being flared, into economic value for the country and its citizens.
The President gave the charge on Wednesday at the State House, Abuja, when he received the NLNG Board and management, led by its Managing Director and Chief Executive Officer, Engineer Adeleye Falade.
Tinubu said Nigeria could no longer afford to allow valuable gas resources to become an environmental liability through flaring, stressing the need for greater domestic utilisation of gas to support the economy and reduce the burden on consumers. He urged NLNG to focus not only on increasing international revenue but also on meeting domestic energy needs.
The President commended NLNG for expanding its operations and improving returns on investment, assuring the company of his administration’s willingness to provide necessary incentives to stimulate further growth and capacity expansion. He stressed that Nigeria’s resources in the ground would have little value unless they were effectively harnessed to serve the economy and improve the lives of Nigerians.
Falade, who was at the State House to brief the President on NLNG’s operations since assuming office in April, disclosed that the company had generated more than $150 billion since inception, with its shareholders, including the Federal Government, receiving about $47 billion in dividends. Nigeria holds a 49 per cent stake in NLNG.
He explained that NLNG had previously operated at about 60 per cent capacity due to inadequate crude oil production, which restricted operations to four of its six available production trains. However, increased oil production resulting from positive developments in the sector has enabled the company to raise its operations to five trains.
The NLNG boss disclosed that the company is keen to inaugurate Train Seven, which is expected to increase its production capacity by 35 per cent. He added that NLNG currently accounts for about five per cent of the global LNG market, while all its liquefied petroleum gas (LPG), commonly known as cooking gas, is presently dedicated to the domestic market.
Falade also said NLNG shareholders had commended the stability in Nigeria’s fiscal environment, noting that the development was helping to attract fresh investments into the oil and gas industry. He commended security agencies and industry regulators for their contributions to the stability being recorded in the sector.
He further disclosed that the Bonny-Bodo Road and Bridge project, financed by NLNG, had been completed and was awaiting official commissioning.
Also present at the meeting were the Deputy Managing Director, Olakunle Osobu; Board Director and Managing Director of TotalEnergies EP Nigeria Limited, Matthieu Bouyer; Board Director, Vice Chairman and Managing Director of Nigeria Agip Exploration, Maurizio Pinna; and General Manager, External Relations and Sustainable Development, Sophia Horsfall.
Others included Manager, Government Relations and Regulatory Compliance, Abdul Umar; Head, Government Relations, Tonbrafa Nanaghan; and Senior Government Relations Advisor, Rufai Mohammed Lawal.
The Minister of Information and National Orientation, Mohammed Idris; Special Adviser to the President on Information and Strategy, Bayo Onanuga; and Senior Special Assistant to the President on Energy Transition, Yasmin Mohammed, also attended the meeting.
