If there’s one Nigerian company that has grown to become a globally acknowledged standard organization, it is the Nigerian Liquified Natural Gas (NLNG) Company.
This was affirmed by President Bola Ahmed Tinubu, at a courtesy visit by the NLNG management in August 2023; when the President reiterated the importance of the Nigeria LNG, pledging his administration’s unalloyed commitment to leveraging on the domestic utilization, processing and international export of Nigeria’s massive gas resources as a transition fuel to catalyze the fundamental restructuring of the nation’s economy for expansive growth during his tenure.
A joint venture between the Nigerian National Petroleum Corporation (NNPC) 49 per cent, Shell Gas B.V., 25.6 per cent, Total LNG Nigeria Ltd, 15 per cent and Eni International, 10.4 per cent; the NLNG has, since establishment in 1989, grown to become a cornerstone of Nigeria’s energy sector, playing a pivotal role in transforming Nigeria into the most dominant gas market in Africa; and arguably the largest gas company in Africa and a leading player in the global liquified natural gas (LNG) market.
Established to harness Nigeria’s vast natural gas resources, which had largely been neglected, the NLNG is committed to driving forward the expansion and utilization of natural gas across the country. Since its establishment, the NLNG has consistently demonstrated its commitment to this vision, delivering significant achievements and fostering positive developments that resonate across the nation and beyond.
EXPANDING GAS INFRASTRUCTURE AND UTILIZATION
NLNG’s transformational role has expanded the frontiers of gas utilization in Nigeria, facilitating the extraction, processing and export of natural gas. This has led to the development of extensive gas infrastructure, which includes six operational trains with a total production capacity of 22 million tonnes per annum (mtpa), making the NLNG one of the largest LNG production facilities in the world.
Not done with the 6 trains, the NLNG embarked on the construction of a Train7, projected to add 8mtpa of gas to current levels, raising production capacity to 30mtpa. In November 2023, the Managing Director of the NLNG, Mr Philip Mshelbila announced that the project had reached 52percent completion.
The Train 7 project marks a significant step towards meeting growing global LNG demand and reinforcing Nigeria’s position as a top LNG exporter.
ENHANCING ENERGY SECURITY AND ECONOMIC GROWTH
By focusing on expanding gas infrastructure, NLNG has significantly reduced gas flaring, turning a once-wasteful practice into a valuable economic resource. This shift not only mitigates environmental impact but also ensures that more gas is available for domestic consumption and international export, contributing to Nigeria’s economic growth.
NLNG’s contributions go beyond infrastructure; the company has been instrumental in ensuring energy security for Nigeria. By providing a reliable supply of LNG, NLNG supports the nation’s power generation and industrial sectors, leading to increased energy availability and stability. This, in turn, fosters economic development by attracting investment and facilitating industrialization.
Moreover, NLNG’s operations have generated substantial revenue for Nigeria, making a significant contribution to the country’s GDP. The company’s export activities have also improved Nigeria’s balance of payments, enhancing the nation’s financial stability and global economic standing.
CORPORATE SOCIAL RESPONSIBILITY
From Education to healthcare, to community development, the NLNG has invested heavily and expressed continuous commitment to sponsoring sustainable initiatives.
Healthcare: The company has initiated several healthcare interventions including the bonny community health insurance programme (BCHIP) and the bonny malaria elimination program (BNYMEP). To date, over 1,390 persons have enrolled onto the ‘BCHIP’ programme as it continues to fulfill its mandate of Universal Health Care (UHC) for all.
Through the Bonny Malaria Elimination Project (BNYMEP) a strong surveillance system for malaria elimination and the prevention of re-introduction of the parasite was established. The project has to date, according to the NLNG, embarked on a detailed baseline assessment that includes an assessment of the available Health Systems/Structures on the island (i.e. to determine the Island’s health system’s capacity to implement and sustain malaria elimination initiatives); and a comprehensive Malaria Indicator Survey on Bonny. This is the first sub-national indicator survey to establish the true prevalence of malaria in Bonny, for tracking project progress and evaluation.
These two initiatives have changed the face of healthcare delivery within the bonny community and outlying communities
Education: From Undergraduate to Postgraduate levels, the company routinely supports and provides annual scholarships for both in-country and overseas studies, through its University Support Programme.
* NLNG Prize: The company is the proud sponsor of three of the biggest and most prestigious prizes in Africa for science, literature, and literary criticism: The Nigeria Prize for Science and The Nigeria Prize for Literature, each worth USD100,000 in award money, and The Nigeria Prize for Literary Criticism with a N1 million cash reward.
The Nigeria Prize for Literature and The Nigeria Prize for Literary Criticism are aimed at bringing Nigerian authors and literary critics to public attention and celebrating literary craftsmanship in the nation. The Nigeria Prize for Science aims at celebrating excellence in scientific breakthroughs and honours scientists from anywhere in the world who help find solutions to a local or ‘Nigerian’ problem.
ENVIRONMENTAL STEWARDSHIP
NLNG’s commitment to reducing gas flaring and promoting cleaner energy solutions highlights its role in driving sustainable development. The company’s environmental initiatives align with global efforts to combat climate change and protect natural ecosystems.
- Biodiversity
A notable intervention is the Finima Nature Park, established in 1999. The park measures approximately 1000 hectares and is presently being managed by the Nigerian Conservation Foundation (NCF). According to a carbon stock assessment carried out in 2019, the park has helped to offset carbon to the tune of 247,158.78 MgTCO2e annually. This aligns with one of the agreements contained in the Kyoto Protocol on greenhouse gas emissions and NLNG’s commitment to a sustainable environment.
On August 21, 2019, Finima Nature Park was designated an internationally acclaimed centre for Wetland Education and therefore a member of Wetlands Link International.
This makes it one of the 350 Wetland Centres in the world and the second in Nigeria to become a member of Wetlands Link
- Waste Management
From building a sewage effluent treatment plant for industrial and residential water, sewage and treatment disposal, the NLNG instituted a ‘Cradle to Grace’ strategy for solid waste management which, according to the company, is underpinned by the 4R philosophy of Reduce, Reuse, Recycle and Recover.
FUTURE PROSPECTS
Looking ahead, NLNG is poised to continue its trajectory of positive impact. The company’s strategic focus includes further expansion of its production capacity, increased domestic gas utilization, and continued investment in innovative technologies and sustainable practices. By fostering partnerships with local and international stakeholders, NLNG aims to drive economic diversification and promote Nigeria’s transition to a low-carbon economy.
NLNG currently runs a $1 billion NLNG Local Vendors Financing Scheme (NLVFS) which facilitates access to funds from participating banks by NLNG-registered vendors. This way, vendors get speedy access to finance for their contracts, or procurement orders, at competitive rates.
The Nigeria Liquified Natural Gas Company’s 35 years of operations have been marked by remarkable achievements and transformative contributions to the nation’s energy sector. Through its unwavering commitment to infrastructure development, economic growth, environmental stewardship, and community support, NLNG stands as a beacon of progress and a catalyst for sustainable development in Nigeria. As the company looks to the future, it remains dedicated to powering the nation and illuminating possibilities for generations to come.
