Tinubu to NLNG: Turn Gas Flaring Into Economic Gains for Nigerians
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Senator Bola Ahmed Tinubu |
“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.” Tinubu.
President Bola Tinubu has charged the Nigeria Liquefied Natural Gas Limited to intensify efforts to harness the country’s vast gas resources and eliminate gas flaring, saying the wasted resource must be converted into economic benefits for Nigerians.
Tinubu gave the charge on Wednesday when the NLNG board, led by its Managing Director and Chief Executive Officer, Adeleye Falade, briefed him on the company’s operations at the State House, Abuja.
The President said his major concern was ensuring that gas resources were increasingly deployed for domestic use, stressing that gas flaring should no longer be allowed to remain an environmental liability when it could be turned into an economic asset.
He said, “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.”
Tinubu commended NLNG for expanding its capacity and increasing revenue, assuring the company of his administration’s readiness to provide incentives that would stimulate further growth and investment.
He said Nigeria’s resources in the ground would have little value unless they were extracted and deployed to serve the economy and improve the welfare of citizens.
The President also urged NLNG to pay attention to the domestication of energy requirements and pricing mechanisms to ensure that ordinary Nigerians benefited from the country’s gas wealth.
Earlier, Falade disclosed that NLNG had generated more than $150bn since inception, while its shareholders, including the Federal Government, had received about $47bn in dividends. Nigeria holds a 49 per cent stake in the company.
He explained that NLNG had previously operated at about 60 per cent capacity due to inadequate crude oil production, which restricted operations to four of its six available trains.
Falade, however, said increased crude oil production following positive developments in the oil and gas sector had enabled the company to increase its operations to five trains, with further improvements expected.
He said NLNG was preparing to inaugurate Train Seven, which would increase the company’s capacity by 35 per cent, noting that the company currently accounts for about five per cent of the global LNG market.
The NLNG boss also disclosed that all of the company’s liquefied petroleum gas, commonly known as cooking gas, production was currently directed to the domestic market.
He said the company’s shareholders had commended the stability in Nigeria’s fiscal environment, which he said was helping to attract fresh investments into the sector.
Falade also praised security agencies and oil and gas regulators for their role in sustaining stability in the industry.
He further disclosed that the Bonny-Bodo Road and Bridge project, financed by NLNG, had been completed and was awaiting official commissioning.
The NLNG delegation included the Deputy Managing Director, Olakunle Osobu; TotalEnergies EP Nigeria Limited Managing Director and Country Chair, Matthieu Bouyer; Nigeria Agip Exploration Vice Chairman and Managing Director, Maurizio Pinna; and General Manager, External Relations and Sustainable Development, Sophia Horsfall.
Minister of Information and National Orientation, Mohammed Idris; Special Adviser to the President on Information and Strategy, Bayo Onanuga; and Senior Special Assistant to the President on Energy Transition, Yasmin Mohammed, attended the meeting.
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