NLNG loses $7bn revenue over gas shortage challenges

The Nigeria Liquefied Natural Gas (NLNG) Limited says it has lost almost $7 billion revenue so far in 2022 due to shortage of gas supply.

The revenue loss can be attributed to the increasing security challenge which has hit the oil and gas companies across the country and has negatively been impacting the production and revenues of the NLNG.

This was made known by NLNG’s General Manager, Production, Adeleye Falade, during a panel session at the 45th Nigeria International Conference and Exhibition (NAICE) 2022, with the theme: “Global Transition to Renewable and Sustainable Energy and the Future of Oil and Gas in Africa,” on Wednesday, August 3, 2022, in Lagos.

Falade lamented that the unavailability of important gas pipelines like the Abuja-Kaduna-Kano (AKK) Pipeline and the lack of gas pipelines in the eastern corridor for distribution were impacting negatively on their production.

He said, “I’ve spoken eloquently about the AKK Pipeline. In the eastern corridor, we also don’t have enough pipeline distribution pipeline.

“But the ones that we have, what has happened to them? Today, Trans-Niger Pipeline, which is the main artery in the eastern region, had been down since March. We don’t know when it’s going to come back.

“As a result of that, I don’t have gas in the LNG to run my plants. Currently trending 99.4 per cent year-to-date availability, my utilisation is moving around 68 per cent.

“The data between that 68 per cent and the 99.4 per cent is equivalent to almost $7 billion revenue today, which would have found its way into our economy, which would have helped our government in a cash-constrained world. And I’m not talking about the impact of upstream.”