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NLNG secures gas deals amid rising global energy demand‎

NLNG Launch post SQ 05 v06

Nigeria LNG LimitPorted (NLNG) has announced a strategic shift toward third-party gas sourcing to sustain production and meet growing energy demands across Africa and global markets.
‎By Desmond Ejibas

‎Nigeria LNG LimitPorted (NLNG) has announced a strategic shift toward third-party gas sourcing to sustain production and meet growing energy demands across Africa and global markets.

‎Mr Nnamdi Anowi, General Manager, Production, NLNG, disclosed this while addressing a Focussed Group Session at the Gastech Exhibition and Conference in Milan, Italy.

‎The session was themed “Resilience in the Face of Operational Challenges – The NLNG Story.”

‎Anowi explained that the move became necessary following the International Oil Companies’ (IOCs) divestment from onshore to deepwater operations in Nigeria.

‎He recalled that NLNG achieved record output in 2019 with 316 LNG cargos, but subsequent gas supply constraints triggered a strategic rethink.

‎“Our initial gas supply came from shareholder IOCs. However, with Eni transferring assets to Oando and other divestments, we shifted focus to third-party gas sourcing.

‎“Today, 75 per cent of our feed gas comes from third-party suppliers, and we have signed several Gas Supply Agreements to sustain operations,” he said.

‎Anowi revealed that the company expects its second tranche of third-party supplies by October.

‎According to him, at this pace, we anticipate adequate gas from late 2026 through early 2027,” he added.

‎Anowi underscored the continent’s energy deficit, noting that 60 per cent of Africa’s population still lacked access to affordable energy despite its vast reserves.

‎He described Nigeria as a ‘gas-rice nation with largely untapped offshore reserves,’ stressing the importance of infrastructure and investment to unlock them.

‎“The Federal Government has rolled out incentives for offshore gas exploration and production. This is where LNG plays a critical role, delivering energy to the parts of Africa that need it most,” he said.

‎Anowi projected that affordable energy access could transform Africa into a global manufacturing hub, noting how Nigeria’s economy boomed when the country witnessed improved power.

‎He said that similar developments could occur across Africa with affordable energy access, making the continent to become a global manufacturing hub.

‎“What happened in Nigeria when power availability improved can happen across Africa. With energy, industry will thrive, jobs will be created, and production will shift to Africa.

‎“Investors and financiers must begin to view Africa as a viable destination, especially with current government incentives,” he added.

‎On NLNG’s operations, he highlighted that NLNG operated six trains with combined capacity of 22 million tonnes per annum (MTPA), while Train 7 is under construction to expand output by over 30 per cent.

‎However, he noted that plant utilisation had averaged around 60 per cent over the past three years, reinforcing the need for alternative gas supply strategies.

‎Anowi reaffirmed NLNG’s commitment to combating energy poverty and spurring industrial growth in Africa.

‎Earlier, Ms Tolulope Ajitoni, Senior Instrumentation Engineer at NLNG, presented a technical paper on “New Trends in Operational Technology Security.”

‎She called for heightened cybersecurity measures across the LNG value chain, warning that cyberattacks could trigger catastrophic safety incidents and production losses.

‎“In the next 25 years, LNG will be central to power generation, cooking, and industrial applications.

‎“Protecting this infrastructure from cyber threat is no longer optional,” she said.

‎Ajitoni proposed a five-layer cybersecurity framework covering identification, protection, detection, response, and recovery.

‎She cautioned that a breach in LNG operational systems could result in explosions, fires, and safety hazards for plant personnel. (NAN)