Nigeria LNG Limited has said it is facing significant operational challenges, with only two of its six gas trains currently functional due to persistent vandalism of its pipelines.
Speaking at the Nigeria International Energy Summit in Abuja on Wednesday, NLNG Managing Director, Dr. Philip Mshelbila expressed concern over the heavy losses caused by insecurity around the company’s gas assets.
He highlighted the company’s difficulty in meeting global demand for liquefied natural gas due to damage caused by illegal pipeline connections.
“In the current moment, I am only running two trains out of six,” Mshelbila lamented.
“Three of our gas supply pipelines are down for repairs due to illegal connections by thieves. These are critical lines—GTS 1, GTS 2, and GTS 4—that supply the energy required for our operations.”
The NLNG chief urged a reevaluation of energy security, noting that while oil infrastructure has seen improvements, gas security remains increasingly vulnerable.
“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.
He stated that several European countries and others have sought LNG supplies from Nigeria, but the country has been unable to meet their demands.
“Countries like Qatar and the US are in a stronger position, and we are unable to compete due to the security challenges we face,” he noted.
This insecurity has directly impacted Nigeria’s LNG exports. Earlier this year, exports dropped by 20% due to the destruction of key pipelines by suspected vandals. As a result, planned shipments for next month are expected to be delayed by at least 10 days.
Despite these challenges, Mshelbila commended the Nigerian government for fostering an enabling environment that has attracted significant investments into NLNG.
He also praised the public-private partnership model behind the company’s success, particularly in advancing the Train 7 project.
“Train 7, a $5bn investment, is an example of the success of this 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, highlighting the significance of the project as a beacon for potential investments in the energy sector.
He echoed industry experts’ calls for the government to prioritize energy security as a national imperative.
The Special Adviser to the President on Energy, Olu Verheijen, praised NLNG’s success, describing it as a model for Nigeria’s energy sector.
She stressed the importance of transparent governance, financial discipline, and clear commercial processes in attracting investment.
“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 remarked.
