By Seun Ibiyemi
President Bola Ahmed Tinubu has charged the management of Nigeria Liquefied Natural Gas Limited (NLNG) to maximise the country’s gas resources by reducing gas flaring and increasing domestic utilisation.
Tinubu gave the charge on Wednesday at the State House in Abuja when he received members of the NLNG Board, led by its Managing Director and Chief Executive Officer, Adeleye Falade.
The President said Nigeria must move beyond earning revenue from international gas markets and ensure that the country’s gas resources are deployed to support domestic economic growth and improve the welfare of Nigerians.
He specifically urged the company to convert gas currently being flared, which he described as a potential environmental liability, into economically beneficial resources for domestic consumers.
“My major concern is the domestic utilisation, where you must be able to take out the flaring and convert potential environmental liability to what could be strategically and economically beneficial to the consumers in the country,” Tinubu said.
While commending NLNG for improving its capacity and returns on investment, the President assured the company of the Federal Government’s willingness to provide incentives required to support further expansion.
He said the government would continue to create an enabling environment for the company to maximise Nigeria’s gas potential.
“I think that is the primary focus. But think of people, the need for domestication of some of these energy requirements and pricing mechanisms so that the ordinary man will feel it,” he added.
Speaking earlier, the NLNG Managing Director and CEO, Adeleye Falade, said the board was at the State House to brief the President on the company’s operations since he assumed office in April.
Falade disclosed that NLNG had generated more than $150 billion since inception, with its shareholders, including the Nigerian government, receiving about $47 billion in dividends. Nigeria holds a 49 per cent stake in the company.
He explained that NLNG had previously operated at about 60 per cent capacity because inadequate crude oil production limited the availability of feedstock, forcing the company to operate only four of its six trains.
However, he said improved developments in the oil and gas sector had increased crude production and enabled the company to raise its operational capacity to five trains, with further improvements expected.
Falade also disclosed that all liquefied petroleum gas (LPG), commonly known as cooking gas, produced by NLNG was currently being supplied to the domestic market.
He said the company was also working towards the inauguration of Train 7, which is expected to increase NLNG’s production capacity by 35 per cent.
According to him, Nigeria LNG currently accounts for about five per cent of the global LNG market.
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The NLNG chief executive further said shareholders had commended the stability in Nigeria’s fiscal environment, which he noted was helping to attract fresh investments into the oil and gas industry.
He also praised security agencies and industry regulators for their role in maintaining the improved operating environment.
Falade disclosed that the Bonny-Bodo Road and Bridge project, financed by NLNG, had been completed and was awaiting official commissioning.
The project is expected to improve connectivity and economic activities around the Bonny area of Rivers State.
