As Nigeria inches closer to completion of Train 7, Nigeria LNG Limited (NLNG) has asked the Federal Government to urgently address the loopholes in the Production Sharing Contracts (PSCs) that govern deep-water exploration, adding that the segment is yet to offer commercially viable terms for producers.
  
Managing Director and Chief Executive Officer of Nigeria LNG Limited (NLNG), Dr. Philip Mshelbila believes that the gas feedstock the country needs is readily available but inherent bottlenecks must be addressed to unlock the resources.
   
Mshelbila, who said the company is on track with its current investment portfolio stressed the need to overcome the challenges within Nigeria’s energy sector.
   
As Train 7 nears completion, Mshelbila noted that the challenges need to be addressed to make improved gas processing capacity and additional trains achievable.
    
He said the gas the country needed could only come from deep water gas, stressing that “the terms for that must be addressed. 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 aspirations for Train 8. 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.
    
“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.” 
    
Mshelbila said the company is close to completing Train 7, a development which would lead to a remarkable milestone of 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,” he said.
    
Speaking during a visit by the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, to the NLNG plant on Bonny Island, Rivers State, Mshelbila Nigeria must be deliberate in its desire to take opportunities offered by the energy transition.
    
 According to him, the recognition of gas as a transition fuel and the quest for clean energy to increase its gas investment and harvest the gains from gas must remain priorities for the government.