The Nigeria Liquefied Natural Gas (NLNG) Limited on Monday, October 9, 2023, played host to the minister of state for Petroleum Resources (gas), Mr. Ekperikpe Ekpo, where the Company’s Managing Director, Dr. Philip Mshelbila spoke from heart about gas development and threats to the sector’s growth in Nigeria.
Despite an explicit statement issued by the company for the exclusive event, there have been different reports in the media on what Dr. Mshelbila said concerning the progress on Train 7 plant, which is already at 50% completion stage, as well as on Train 8.
Briefing the Minister on NLNG’s operations and business, Dr. Mshelbila. Was quoted by the statement to have said; “Today, the biggest challenge we have, one that poses a threat not only to our existing operations but also to our expansion plans, is feed gas supply. Trains 1 to 6 currently operate at roughly half their potential capacity, a situation that has persisted for some time. The main issue behind the challenge is crude oil theft, which affects associated gas supply. The plant is half-full, not because we don’t have the capacity but because the feed gas is not there. We have aspiration for Train 8 but we can not progress that work because we have no line of sight as to where that gas will come from. We believe that the gas can only come from deep water gas, but the terms for that must be addressed. At present, the Production Sharing Contracts (PSCs) that govern deep-water exploration do not offer commercially viable terms for producers.
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“Our commitment to harnessing the immense potential of natural gas will not only restore Nigeria’s reputation as a major energy powerhouse but also propel us towards a cleaner, greener future. With innovation, collaboration by a wide array of stakeholders, including the government, and unwavering determination, we can shape the energy landscape of tomorrow, driving economic prosperity, creating jobs, and mitigating environmental challenges through gas,” he said.
Fact cheking reports on Mshelbila’s statement
First. All the reports from the event were sourced from this statement the company issued as no journalist was at the event. Hence, the statement remains a veritable source to test the way all the reports were framed.
Second. All the reports confirmed that the NLNG has already invested millions of dollars in the project and taken the work to 50 per cent completion stage.
Third. As clearly seen in the statement above. Dr. Mshelbila did not say the Train 8 project is not feasible. He only highlighted challenges in the gas industry, which also affected the company and, of course, its biggest gas project in Nigeria.
Four. The report, which misrepresented Mshelbila to have said the Train 8 is not feasible, is heavy on sensationalism. It doesn’t, in anyway, truly represent what the NLNG boss said at the event.
Mshelbila: Making MD’s Message Unambiguous
To show clearly what Dr. Mshelbila wanted his visitor, the Minister in charge of gas, to do, the statement by NLNG quoted him to have “stressed the need to overcome the challenges within Nigeria’s energy sector. He stated that failure to address the root causes of these issues would perpetuate the country’s struggle with energy poverty and result in a significant loss of revenue from the monetisation of valuable resources..
“He stated further that a pivotal starting point for remedying these industry challenges lies in a concentrated effort on the gas sector.
“As we embark on the journey to complete Train 7, we are on the precipice of achieving a remarkable milestone – a capacity of 30 Million Tonnes Per Annum (MTPA). This accomplishment will not only position us as one of the largest single-site operations globally but potentially among the top three worldwide in terms of such capacity at a single site. It is an achievement that elevates Nigeria’s standing, placing us among the top six nations in this crucial industry.
“However, the world is evolving at an unprecedented pace, and recent events, such as the Russian/Ukraine conflict, have ushered in a wave of new developments in the LNG sector. This surge in activity underscores the robust demand for liquefied natural gas, a demand recognized by nations worldwide as integral to the global energy transition. Considering these dynamic changes, our position in the rankings is likely to shift rapidly, as other countries make substantial investments in LNG production. This is why we believe it is important for us to conclude Train 7 and begin to look beyond that for further expansion.”
