The Federal Government’s annual revenue of $862 million from Nigeria Liquefied Natural Gas Limited (NLNG) is under serious threat due to persistent attacks on gas pipelines by vandals.
Over the past 25 years, the federal government has received approximately $21.56 billion out of the $44 billion in dividends disbursed by NLNG, averaging an annual income of $862 million. However, continued sabotage of critical gas infrastructure now jeopardizes this revenue stream.
Speaking at a panel session during the ongoing Nigeria International Energy Summit in Abuja, Dr. Philip Mshelbila, Managing Director and Chief Executive Officer of NLNG, disclosed that only two out of the company’s six gas trains are currently operational due to repeated attacks on gas pipelines.
He emphasized that the company has struggled to meet the growing global demand for liquefied natural gas (LNG) due to the damage caused by illegal pipeline connections.
“At 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.”
Energy Security in Jeopardy
The NLNG boss called for a reassessment of Nigeria’s energy security, warning that while progress has been made in protecting oil infrastructure, gas security remains highly vulnerable.
“Energy security must be seen as equally important as national security. However, gas security has deteriorated, and until we can safeguard these pipelines, we will continue to underperform,” he said.
Due to these challenges, Nigeria has been unable to meet increasing LNG demand from Europe and other global markets. Mshelbila noted that countries like Qatar and the United States are at a competitive advantage, as Nigeria struggles with security-related disruptions.
Decline in LNG Exports
Pipeline vandalism has had a direct impact on Nigeria’s LNG exports. Earlier this year, exports declined by 20%, following the destruction of vital pipelines. As a result, planned shipments for the coming month are expected to face delays of at least 10 days.
Despite these setbacks, Mshelbila commended the Nigerian government for fostering an investment-friendly environment that has enabled significant growth in the LNG sector.
Public-Private Partnership and Train 7 Investment
He highlighted the success of the public-private partnership (PPP) model, particularly in driving the $5 billion Train 7 project.
“Train 7 is a testament to the effectiveness of this model. We’ve seen overwhelming interest from investors, which is a positive reflection of the company’s governance and structure,” Mshelbila said, stressing that this model could serve as a blueprint for attracting more investments in Nigeria’s energy sector.
Calls for Stronger Government Action
However, he also pointed out that while NLNG has benefited from this partnership, the broader Nigerian economy faces significant investment challenges, particularly in the area of energy security.
Several industry experts have urged the government to make energy security a top national priority.
Special Adviser to the President on Energy, Olu Verheijen, also weighed in on NLNG’s success, calling it a model for the energy sector in Nigeria. She stressed the need for transparent governance, financial discipline, and clear commercial frameworks to attract sustained investments.
“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.
She, however, reiterated that insecurity remains a major obstacle, urging all stakeholders to work towards resolving the persistent threats to Nigeria’s energy infrastructure.