President Bola Tinubu has urged the Nigeria Liquefied Natural Gas (NLNG) to reduce gas flaring and convert Nigeria’s gas resources into greater economic benefits for Nigerians.
Tinubu made the call on Wednesday at the State House in Abuja when he received the NLNG Board and executive management, led by its Managing Director and Chief Executive Officer, Adeleye Falade.
The President said NLNG’s focus should go beyond increasing revenue from international markets to promoting greater domestic utilisation of Nigeria’s gas resources.
He described gas flaring as an environmental liability that could instead be converted into an economic asset for consumers and the wider economy.
Tinubu also pledged his administration’s support for incentives that could help NLNG expand its capacity and maximise the country’s gas potential.
According to the President, Nigeria’s natural resources can only benefit the economy when they are brought into productive use.
He further called for greater domestication of energy requirements and pricing mechanisms that would enable ordinary Nigerians to benefit from the country’s resources.
NLNG Generates Over $150bn
Falade told the President that NLNG had generated more than $150 billion since its inception, while its shareholders, including the Nigerian government, had received about $47 billion in dividends.
The Nigerian government owns a 49 per cent stake in NLNG.
Falade said the company had previously operated at around 60 per cent capacity because inadequate crude oil production restricted it to four of its six available trains.
However, increased oil production following recent developments in the sector has enabled NLNG to raise its operating capacity to five trains.
He said further improvements were expected, while the company was also working towards the inauguration of Train Seven, which would increase its capacity by 35 per cent.
NLNG currently accounts for about five per cent of the global liquefied natural gas market, according to Falade.
He added that all the company’s liquefied petroleum gas, commonly known as cooking gas, was currently being supplied to the domestic market.
Falade also said shareholders had commended the stability of Nigeria’s fiscal environment, which he said was helping to attract further investment into the oil and gas sector.
He commended security agencies and industry regulators for contributing to the improved stability in the sector.
The NLNG chief executive further disclosed that the Bonny-Bodo Road and Bridge project, financed by the company, had been completed and was awaiting official commissioning.
