Nigeria LNG Limited (NLNG) has announced that it is currently operating at only one-third of its capacity due to severe disruptions caused by pipeline vandalism.
According to Philip Mshelbila, Managing Director of NLNG, the company has been forced to run only two of its six trains.
He described the situation as unprecedented and a threat to both the nation’s revenue streams and NLNG’s projected N727 billion dividends for 2025.
The impact of the attacks has been catastrophic for NLNG, which plays a pivotal role in Nigeria’s economy and accounts for approximately 7% of the global liquefied natural gas (LNG) supply.
The company relies on an extensive network of pipelines to transport natural gas from upstream suppliers to its Bonny Island processing facility. However, frequent vandalism has left four of its six trains idle, crippling production and undermining Nigeria’s reputation as a reliable energy supplier.
“At the moment, I am only running two trains out of six,” Mshelbila said during a panel session at the Nigeria International Energy Summit in Abuja. “Three of our gas supply pipelines—GTS 1, GTS 2, and GTS 4—are down for repairs due to illegal connections by thieves. These are critical lines that supply the energy required for our operations,” he added.
The production shortfall has also had a severe impact on Nigeria’s export earnings with European and other international customers turning to alternative suppliers amid the ongoing energy crisis triggered by the Russia-Ukraine conflict.
Mshelbila lamented the lost opportunities, noting that several European nations had approached NLNG for LNG supplies but had to be turned down due to insufficient capacity.
“Since the Russian war, I have been approached by dozens of European and other countries for LNG, but we have been unable to supply because of this. You see what is happening with Qatar and the US. We can’t compete,” he stated.
The reduction in gas supply has raised serious concerns about the sustainability of Nigeria’s energy sector.
Experts have warned that if the vandalism persists, it could jeopardize the government’s plans to earn over N727 billion in dividends from NLNG this year.
Mshelbila called for urgent action to address the security challenges in the Niger Delta, where most of Nigeria’s oil and gas infrastructure is located.
He emphasized that protecting gas pipelines should be considered a matter of national security.
“Energy security has to be seen as important as national security. However, gas security has deteriorated, and until we can safeguard these pipelines, we will continue to underperform,” he warned.
Meanwhile, NLNG’s shareholders—NNPCL (49%), Shell (25.6%), TotalEnergies (15%), and Eni International (10.4%)—have declined to comment on the situation with analysts speculating that the sustained disruptions could lead to a reassessment of their investment strategies in Nigeria.
The outlook for Nigeria’s LNG sector remains uncertain with the combination of infrastructure challenges, security risks and legal liabilities posing hurdles.
