Nigerian LNG Produces Gas Below Capacity

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CEM REPORT | Nigeria Liquified Natural Gas (NLNG) has blamed the country’s inability to produce gas at for domestic and export usage at full capacity on crude oil theft and pipeline vandalism.

This is according to the Chief Executive Officer of NLNG, Philip Mshelbila, who added that the NLNG had to stop exports of liquefied petroleum to meet demand from the local market.

“We have been producing in the last month at about between 60 to 68 per cent utilisation. In other words, roughly 35 per cent of our capacity is empty,” he told an energy conference in Abuja.

“There are many factors, but the biggest one of them is crude oil theft. If we don’t address this, we will not get out of this quagmire that we’re in.”

Nigeria LNG is a consortium between state-run Nigerian National Petroleum Company (NNPC) Limited, Eni, TotalEnergies and Shell with a capacity of 22 million tonnes per year.

Recall that in an earlier report by CEM, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) disclosed that the country lost $1 billion in revenue during the first quarter of this year due to crude oil theft.

[READ ALSO] Nigeria Lost $3.5Bn to Crude Oil Theft in 2021

Nigeria through its Decade of Gas plan seeks to leverage the country’s huge gas reserves to become not just a major exporter but to become a major gas-consuming nation.

The country had hence through investments and partnerships in the gas sector created a 10 hectares gas hub in Polaku, Bayelsa State for hosting gas-based infrastructure and facilities. LPG jetties/terminals, storage facilities, inland transportation, cylinders manufacturing, bottling, and retail.

Others include 6,000 metric tonnes of LPG storage facilities, annual production of 1.2million LPG composite cylinders, and infrastructure and facilities for processing 840mmscfd of gas across fourteen states of the Federation, according to Business Post.

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