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NLNG says ‘Train 8’ project will no longer be possible 

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The Nigerian Liquefied Natural Gas (NLNG) Limited has said that the planned Train 8 project will no longer be possible.

This is because of the unavailability of feed gas supply in the country.  

In a report earlier this week, ThisDay reported that during a recent visit by the Minister for Gas, Ekperikpe Ekpo to Bonny, the NLNG Managing Director, Dr. Philip Mshelbila said that the company’s aspiration to expand its gas processing capacity further with the construction of additional Train 8 would no longer be feasible. 

According to Dr. Mshelbila, the lack of feed gas was a result of the rampant crude oil theft that has crippled oil and gas operations for years and only now exacerbating the problem as the country’s crude oil and associated gas production is dwindling.  

Also, the NLNG Boss said: 

According to ThisDay, in August 2022, the former General Manager in charge of production at NLNG, Mr. Adeleye Falade, had said that the company’s 22 million metric tons per annum (mtpa) LNG plant production was at 99.4% year-to-date availability while utilization hovered around 68%. 

Falade had stated further that the data between the 99.4% availability and the 68% utilisation, which was equivalent to $7 billion in revenue, was part of the effect of the critical oil and gas pipelines that were shut down due to insecurity at the facilities. 

During Ekpo’s visit at Bonny, Dr. Mshelbila noted the need for the country tto focus on resolving root causes of gas supply challenges so the loss of revenue can be tackled, and the country can indeed harness and maximize its gas resources to solve the multidimensional problems presented by energy poverty.  

It’s important to highlight that ThePressNG has outlined strategies to address gas supply challenges: 

Preventing Crude Oil Theft: By addressing theft, we can secure associated gas supplies. 

Ensuring Non-Associated Gas Availability: Making sure we have access to gas directly from wellheads. 

Improving Gas Processing: Enhancing the way we process gas to optimize its usage. 

Addressing Operational Inefficiencies: Tackling issues that hinder smooth operations in the gas sector. 

Favorable Investment Policies: Putting in place policies that attract investments in the gas sector. 

Upgrading Infrastructure: Enhancing our gas-related infrastructure for improved efficiency. 

Fair Pricing Structure: Establishing prices that encourage suppliers and protect consumer interests. 

Introducing Guarantee-Backed Payment Contracts: Implementing contracts with guaranteed payments to resolve pricing concerns and boost sector growth. 

NLNG and other partners are currently developing the Train 7 project which is scheduled for commissioning in 2024.

Note also that during Ekpo’s visit to Bonny, he toured the Central Control Room (CCR), the NLNG plant complex and the Train 7 construction site. 

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