Oil & GasTop Story

NLNG MD Laments Persistent Pipeline Vandalism Amid Gas Supply Challenges

"Three of our gas supply pipelines are down for repairs due to illegal connections by thieves"

1.6k

The Nigeria Liquefied Natural Gas Limited (NLNG) is facing significant challenges in meeting global demand for liquefied natural gas due to persistent pipeline vandalism.

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

He spoke at a panel session during the ongoing Nigeria International Energy Summit on Wednesday in Abuja.

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

The hit on the country’s LNG exports is due to persistent vandalism and sabotage of pipelines in the Niger Delta region.

LNG Ltd. disclosed that the sabotage and vandalism has curtailed gas supplies to its plant and this is affecting scheduled shipments.

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

The decrease in exports translates to a reduction of about 3.5 billion cubic meters of LNG supplies.

The persistent problem of pipeline vandalism has led to the discovery of thousands of illegal refineries and pipeline connections.

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.

These illicit activities continue to undermine Nigeria’s oil and gas sector, resulting in significant losses for the country.

Mshelbila attributed the operational challenges to the high level of vandalism on the company’s gas pipelines.

“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,” he said.

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 boss noted the need for a reevaluation of energy security, stating that “energy security has to be seen as important as 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.

The company has received requests from several European countries for LNG supplies, but has been unable to meet these demands due to the security challenges it faces.

“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,” Mshelbila said.

Despite these challenges, NLNG has achieved success through its public-private partnership model, particularly 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.

Leave a comment

Related Articles

Tinubu in Abu Dhabi for Sustainability Summit, Strengthens Nigeria-UAE Ties

President Bola Tinubu arrived in Abu Dhabi on Sunday night to attend...

U.S. Attack on Venezuela Triggers Sharp Drop in Oil Prices

The capture of Nicolás Maduro in a U.S. raid triggered a drop...

Tinubu Orders Full-Scale Hunt for Terrorists Behind Kasuwan Daji Massacre

President Bola Ahmed Tinubu has condemned the “barbaric” attack on Kasuwan Daji...

Just In: Detained Malami, son, wife not yet off the hooks, bail deferred to Jan. 7

The hopes of former Attorney-General Abubakar Malami and his family to celebrate...

Just in: New Year Gesture: Akpabio Withdraws Suits Against Natasha, Others

Inspired by a New Year’s message on forgiveness, Senate President Godswill Akpabio...

Anthony Joshua Discharged from Hospital After Fatal Car Crash in Ogun

World heavyweight boxing champion Anthony Joshua has been discharged from the hospital...

Tinubu’s New Year Vow: More Reforms, Safer Nigeria

President Bola Tinubu has declared that Nigeria is entering a “robust phase”...

Super Eagles Clinch Top Spot With 3-1 Victory Over Uganda

Nigeria’s Super Eagles wrapped up their AFCON 2025 group stage campaign with...

No Going Back: New Tax Laws Will Commence on January 1, 2026 – Pres. Tinubu

In a State House statement issued on Tuesday, the Presidency said all...

Just in: Ex-Justice Minister Malami, son, wife remanded at Kuje prison pending bail

Former Attorney-General of the Federation and Minister of Justice, Abubakar Malami (SAN),...

Governors, British Envoy Visit Anthony Joshua in Lagos Hospital After Fatal Crash

British Deputy Head of Mission, Simon Field, visited world heavyweight champion Anthony...

Nigeria’s Economy Remains Stable Amidst Counterterrorism Operation – Finance Minister Edun

Nigeria’s financial markets are holding strong despite the recent joint counterterrorism operation...

Nationwide Blackout: Nigeria’s National Grid Fails Again

Nigeria was plunged into darkness on Monday following yet another collapse of...

NNPCL Invites Bids for Oil and Gas Assets Amid Union Opposition

The Nigerian National Petroleum Company Limited (NNPCL) has put some of its...

Anthony Joshua Survives Road Crash in Ogun, Two Feared Dead

World-renowned British-Nigerian boxer Anthony Joshua was involved in a serious road accident...

Air Peace CEO Sounds Alarm Over Jan. 1 New Tax Law, May Push Ticket Prices Above ₦1m

Nigeria’s aviation sector is on the brink of collapse as new tax...

Breaking: AFCON 2025: Nigeria Stun Tunisia 3-2, Secure Round of 16 Spot

Nigeria has secured a spot in the Round of 16 at the...

Security Boost: FG Deploys 7,000 Forest Guards in 7-State Pilot Programme

The Federal Government says it is deploying 7,000 newly trained forest guards...

SGF George Akume Ties the Knot with Ooni’s Ex-Queen Zaynab

Sen. George Akume, the Secretary to the Government of the Federation (SGF),...

Alleged Alteration: NASS to Re-gazzette Tax Laws, Says Reps Spokesperson

The National Assembly has directed its Clerk to re-gazette the nation’s tax...