Pipeline Theft Slashes Nigeria LNG’s Capacity by Two-Thirds
(Reuters) — Nigeria LNG, a major gas exporter, is operating at only a third of its capacity due to illegal connections by thieves on key gas supply pipelines, the company's chief executive said on Tuesday.
Philip Mshelbila told the Nigerian International Energy Summit in Abuja that only two of the company's six processing trains are currently running because three key gas supply pipelines are undergoing repairs.
"These are the biggest lines that supply NLNG with gas," he said of the three pipelines.
Oil and gas theft and illegal refining is rife in Nigeria's oil-rich delta, with impoverished locals as well as more sophisticated criminal gangs tapping pipelines.
Mshelbila said that while there has been some improvement in the security of Nigeria's oil sector, the gas sector remains vulnerable.
This insecurity has hindered Nigeria LNG's ability to meet rising global demand, particularly from Europe, where several countries have approached it for supplies.
"Since the Russia-Ukraine war, we have been approached by dozens of European and other countries looking for LNG and we are not able to supply because of this (pipeline theft)," Mshelbila said.
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