President calls for greater use of Nigeria’s gas resources as NLNG targets higher production capacity…
President Bola Tinubu has called on the Nigeria Liquefied Natural Gas to intensify efforts to curb gas flaring and ensure the country’s vast gas resources translate into greater economic benefits for Nigerians.
Tinubu made the call on Wednesday at the State House in Abuja while receiving the NLNG Board, led by its Managing Director and Chief Executive Officer, Adeleye Falade.
The President said NLNG’s priorities should go beyond expanding revenue from international markets to increasing the domestic use of Nigeria’s gas resources.
“I am inspired to understand that you are not limiting yourself to the gradual objective of upgrading.
“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.
“Yes, you are doing great to really want the revenue up and taking advantage of international interests so that Nigeria might be deriving benefits, but help us back home,” Tinubu said.
The President praised NLNG for expanding its operational capacity and delivering strong returns on investment.
He also pledged government support and incentives where necessary to facilitate further expansion and enable the company to maximise the value of Nigeria’s gas resources.
“I enjoy the teamwork and the way the NLNG is going, and you all, as team leaders, are giving value to what was the initial objective of the company. If any other incentive is needed to stimulate growth and expand your capacity, I will be willing to do that,” he said.
Tinubu stressed that Nigeria must ensure its natural resources are developed and deployed to support the economy and improve the lives of citizens.
“We look straight far into the future, and I believe that this country has what it takes; but whatever asset that we have in the ground is nothing unless it’s brought up to service the economy, the people, and realisation of a good return on investment.
“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,” the President added.
Falade told the President that the NLNG Board was at the State House to provide an update on the company’s operations since the current management assumed office in April.
He disclosed that NLNG had generated more than $150 billion since its establishment, with its shareholders receiving approximately $47 billion in dividends.
The Nigerian government owns a 49 per cent stake in the company.
Falade explained that NLNG had previously operated at about 60 per cent capacity because insufficient crude oil production restricted operations to four of its six available trains.
He said increased oil production following recent developments in the sector had allowed the company to raise its operations to five trains, with further improvements expected.
The NLNG chief executive also said the company was preparing to commission Train Seven, which is expected to raise its capacity by about 35 per cent.
NLNG currently accounts for approximately five per cent of the global liquefied natural gas market, he added.
Falade further disclosed that all of the company’s liquefied petroleum gas, commonly known as cooking gas, is currently supplied to the domestic market.
He said shareholders had expressed confidence in the stability of Nigeria’s fiscal environment, which he said was helping to attract additional investment into the oil and gas industry.
The NLNG chief executive also commended security agencies and industry regulators for their role in improving stability across the sector.
He informed the President that the Bonny-Bodo Road and Bridge project, funded by NLNG, had been completed and was awaiting formal commissioning.
