…As gas flare commercialisation programme may unlock $2.5bn investment – NUPRC
By Charles Ebi
Managing Director and Chief Executive Officer of Nigeria Liquefied Natural Gas Limited, Dr Philip Mshelbila, has said the level of vandalism of its pipelines is limiting the ability of the company to meet gas demand from the global market.
He disclosed this at a panel session during the ongoing Nigeria International Energy Summit on Wednesday in Abuja,
This is just as he revealed that only two of the company’s six gas trains are currently operational.
The NLNG boss attributed the operational challenges to persistent attacks on its gas pipelines by vandals.
Mshelbila decried the significant losses suffered by NLNG due to the insecurity surrounding its gas assets.
He added that the company has struggled to meet global demand for liquefied natural gas because of the damage caused by illegal pipeline connections.
NLNG Nigeria recorded a decline in gas exports by over 20 per cent, following frequent attacks on its pipeline infrastructure by vandals.
The attack, which was described by the company as unprecedented, had led to a huge decline in the country’s gas exports and a massive loss of revenue.
The act of sabotage and vandalism has affected gas supplies to its plant, a development that is currently affecting scheduled shipments.
In 2023, Nigeria’s Liquefied Natural Gas exported 17.5 billion cubic meters of liquefied natural gas (LNG). A 20 per cent decrease in exports as a result of vandals implies that supplies had been reduced by about 3.5 billion cubic meters.
Speaking on the development on Wednesday in Abuja, the NLNG Boss, “In the current moment, I am only running two trains out of six.
“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 boss also called for a reevaluation of energy security, highlighting that while progress has been made in securing oil infrastructure, the situation for gas is becoming 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.
He noted that numerous European countries and others have approached Nigeria for LNG supplies but that the country has been unable to meet these requests.
“Countries like Qatar and the U.S. are in a stronger position, and we are unable to compete due to the security challenges we face”, he added.
He lauded the public-private partnership model that has driven the success of the company, notably in the development of 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.
The Special Adviser to the President on Energy, Olu Verheijen, also commented on NLNG’s success, calling it a model for the energy sector in Nigeria.
She emphasised the importance of transparent governance, financial rigour, and the need for clear commercial processes to attract investment.
meanwhile, the Nigerian Upstream Petroleum Regulatory Commission ,NUPRC, has announced that the Nigeria Gas Flare Commercialisation Programme ,NGFCP, has the potential to unlock $2.5 billion in investment in the country’s oil and gas sector.
NUPRC’s Chief Executive Officer, Gbenga Komolafe, made this known on Wednesday during the African Upstream Forum at the 2025 Nigeria International Energy Summit (NIES) in Abuja.
Komolafe stated that the programme would not only attract massive investment but also generate significant revenue and create thousands of jobs.
“As the global focus shifts toward a low-carbon future, NUPRC is embedding sustainability into seven upstream operations, mitigating environmental risks and protecting communities,” he said.
“Key actions include: managing methane and GHG emissions; fostering energy efficiency and carbon credits, promoting investments in Carbon Capture Utilisation and Storage ,CCUS, and enforcing Environmental Social and Governance ,ESG, goals.
“Through the Nigeria Gas Flare Commercialisation Programme ,NGFCP, approximately $2.5 billion in investment will potentially be unlocked, generating huge revenue, and creating a significant number of jobs.
“We have been deliberate in efforts at social inclusiveness for enhancing host community development”.
He highlighted key regulatory actions, including managing methane and greenhouse gas emissions, fostering energy efficiency and carbon credits, promoting investments in Carbon Capture Utilisation and Storage ,CCUS, and enforcing Environmental, Social, and Governance ,ESG, standards.
Nigeria’s first oil and gas decarbonisation forum to be held in March
The NUPRC CEO disclosed that the commission plans to host the first-ever Nigeria Upstream Oil and Gas Decarbonisation Forum in March 2025.
He explained that the forum is in line with the commission’s commitment to sustainable energy development, adding that it will bring together key stakeholders to discuss decarbonisation strategies and carbon monetisation in the Nigerian upstream sector.
“This platform will allow regulators, agencies, and companies across the globe to share valuable insights and experiences on decarbonisation”, he said, adding that the commission will also present its governance and regulatory framework for sustainable energy practices.
Komolafe reaffirmed NUPRC’s dedication to increasing Nigeria’s hydrocarbon reserves and oil production while ensuring cleaner energy operations for enhanced revenue generation.
He said the oil and gas industry was contributing 95 per cent of foreign exchange earnings and 70 per cent to government revenue, boosting employment opportunities, and positioning Nigeria as a formidable leader in the global energy arena.
“At the heart of NUPRC’s efforts is the growth of Nigeria’s hydrocarbon reserves and production in a cleaner manner for enhanced revenue generation.
“In the short-term, we have set new benchmarks for oil and gas production and significantly strengthening the nation’s energy security”, he said.
Komolafe also emphasized the commission’s commitment to boosting domestic gas utilisation and expanding gas infrastructure to meet rising local energy demands.
He said that every Field Development Plan ,FDP, must now include a firm commitment to fulfilling gas delivery obligations.
He added that NUPRC will promote the creation of deep-water clusters to further advance deep-water oil development
