NLNG MD Laments Persistent Pipeline Vandalism Amid Gas Supply Challenges

Due to ongoing pipeline vandalism, Nigeria Liquefied Natural Gas Limited (NLNG) is having a significant challenge in meeting the world’s demand for liquefied natural gas.

According to the company’s Managing Director/CEO, Dr. Philip Mshelbila, only two of NLNG’s six gas trains are currently operational.

He addressed a panel discussion on Wednesday in Abuja during the pending Nigeria International Energy Summit.

Persecondnews reports that late January Nigeria’s exports of Liquified Natural Gas (LNG) dropped by 20%, according to data from Bloomberg ship-tracking.

The Niger Delta region’s ongoing pipeline sabotage and vandalism are to blame for the country’s LNG export losses.

LNG Ltd. reported that scheduled shipments have been impacted by the sabotage and vandalism that have hampered the company’s plant’s gas supplies.

NLNG exports took a hit in 2023, declining by 20% due to rampant pipeline vandalism. In contrast to previous years, the company exported 17.5 billion cubic meters of LNG in 2023.

The exports’ decrease corresponds to a decrease of about 3.5 billion cubic meters of LNG supplies.

Numerous illegal refineries and pipeline connections have been discovered as a result of the ongoing issue of pipeline vandalism.

In 2024, the national oil company reported uncovering numerous illegal facilities, and this year, over 300 illegal refineries and approximately 100 illegal pipeline connections have been discovered.

Nigeria’s oil and gas industry is still being negatively impacted by these illicit activities, which have left the country with significant losses.

Mshelbila attributed the company’s gas pipelines’ high level of vandalism to the company’s high level of operation difficulties.

“In the current moment, I am only running two trains out of six. He claimed that thieves have connected three of our gas supply pipelines, causing them to be repaired.

The affected pipelines, GTS 1, GTS 2, and GTS 4, are critical to NLNG’s operations, supplying the energy required to run the trains.

The NLNG leader argued that energy security should be reconsidered in line with national security.

He noted that while progress has been made in securing oil infrastructure, the situation for gas is becoming increasingly precarious.

“However, gas security has deteriorated, and until we can safeguard these pipelines, we will continue to underperform”, he added.

Due to the security difficulties it faces, the company has received requests for LNG supplies from several European nations.

Due to the security difficulties we face, countries like Qatar and the United States are stronger, according to Mshelbila.

Despite these challenges, NLNG has achieved success through its public-private partnership model, particularly in the development of the Train 7 project.

Source: Per Second News