• Urges board to convert flaring into nation’s economic benefit
Deji Elumoye in Abuja
President Bola Tinubu yesterday charged the management of Nigeria LNG Limited (NLNG) to ensure Nigerians derive greater economic benefits from the country’s abundant gas resources, particularly by reducing gas flaring and increasing domestic utilisation.
Tinubu gave the charge at the State House, Abuja, when he received members of the NLNG Board, led by its Managing Director and Chief Executive Officer, Adeleye Falade.
The President commended the company for increasing its production capacity and improving returns on investment but said greater attention must now be paid to the domestic economy and the benefits accruing to Nigerian consumers.
“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 explained.
Tinubu assured the NLNG board that his administration would provide incentives required to stimulate further investment and expansion of the company’s capacity, provided such growth translated into greater benefits for Nigerians.
“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.
The President said Nigeria’s vast natural resources would have little value unless they were developed and deployed to support economic growth and improve the welfare 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,” he said.
Tinubu also stressed the need for greater domestication of energy resources and appropriate pricing mechanisms that would allow ordinary Nigerians to feel the impact of the country’s gas wealth.
“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,” he said.
Earlier, Falade said the NLNG delegation was at the State House to brief the President on the company’s operations since he assumed office as managing director and CEO in April.
He disclosed that NLNG had generated more than $150 billion since inception, with its shareholders, including the Nigerian government, receiving about $47 billion in dividends. Nigeria holds a 49 per cent stake in NLNG.
Falade explained that the company had previously operated at about 60 per cent capacity because inadequate crude oil production constrained feed gas availability, forcing it to operate only four of its six available production trains.
He, however, said increased oil production resulting from recent positive developments in the oil and gas sector had enabled NLNG to raise its operating capacity to five trains, with further improvements expected.
Falade said the company was also preparing to inaugurate Train Seven, which would increase NLNG’s capacity by 35 per cent and strengthen its position in the global liquefied natural gas market.
According to him, NLNG currently accounts for about 5 per cent of global LNG supply. He disclosed that all of the company’s liquefied petroleum gas (LPG), commonly known as cooking gas, was currently dedicated to the domestic market, reflecting the company’s growing focus on meeting local energy needs.
The NLNG chief executive also told the President that the company’s shareholders had commended the stability in Nigeria’s fiscal environment, which he said was attracting fresh investments into the country.
He commended the security agencies and regulators in the oil and gas sector for contributing to the stability being experienced in the industry.
Falade further disclosed that the Bonny-Bodo Road and Bridge project, financed by NLNG, had been completed and was awaiting official commissioning.
Other members of the NLNG delegation included: Deputy Managing Director, Olakunle Osobu; Board Director and Managing Director, TotalEnergies EP Nigeria Limited and Country Chair, TotalEnergies, Matthieu Bouyer; Board Director, Vice Chairman and Managing Director, Nigeria Agip Exploration, Maurizio Pinna; and General Manager, External Relations and Sustainable Development, Sophia Horsfall.
Also present were Manager, Government Relations and Regulatory Compliance, Abdul Umar; Head, Government Relations, Tonbrafa Nanaghan; and Senior Government Relations Advisor, Rufai Mohammed Lawal.