NLNG seeks reforms to unlock gas potential
By Abdullahi Lukman
Nigeria Liquefied Natural Gas Limited (NLNG) has called for urgent reforms to unlock the country’s vast gas resources, urging the commercialisation of stranded gas reserves, expansion of shared infrastructure and full implementation of incentives under the Petroleum Industry Act (PIA) to attract investment.
Speaking during a panel session at the Nigeria Oil and Gas (NOG) Energy Week in Abuja, NLNG’s General Manager, Commercial, Mr. Timothy Fakrogha, warned that Nigeria could face a gas supply deficit by 2030 despite its enormous gas reserves if critical investments are not made.
Fakrogha said much of the country’s gas remains classified as speculative reserves and must be converted into proven, bankable reserves capable of attracting financing for development.
“There are real opportunities in the market. The challenge is how to commercialise these resources and de-risk gas development so investors can confidently commit capital,” he said.
He advocated the development of shared gas infrastructure rather than multiple standalone facilities by individual operators, noting that such an approach would reduce costs and accelerate gas development.
He cited NLNG’s Gas Transmission System (GTS), which aggregates supplies from several upstream producers, as a model that could be replicated across the industry.
The NLNG executive also urged investors to take advantage of fiscal incentives contained in the PIA and other presidential measures designed to encourage investment in non-associated gas projects, warning that the current investment window would not remain open indefinitely.
Highlighting the company’s contribution to domestic energy supply, Fakrogha said NLNG began supplying Liquefied Petroleum Gas (LPG) to the local market in 2007 and had increased domestic volumes to about 520,000 tonnes by the end of 2025 following deliberate shareholder policies to prioritise local consumption.
He disclosed that the company plans to divert part of its export LPG volumes to the domestic market once the necessary distribution infrastructure is in place before the end of the decade.
Fakrogha welcomed new LNG projects across the country, saying additional investments would strengthen both export capacity and domestic gas utilisation. He also described projects such as the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline as critical to expanding gas distribution through interconnected regional networks.
He further commended regulatory reforms promoting deep offshore gas development and initiatives by the Nigerian Content Development and Monitoring Board (NCDMB) to shorten contracting timelines, saying both would accelerate new investments.
On domestic gas pricing, he stressed the need for a pricing framework that guarantees adequate returns for producers while ensuring affordable energy for consumers.
Meanwhile, industry stakeholders have called for greater deployment of emerging technologies and sustained investment in workforce development to improve efficiency and competitiveness across Nigeria’s oil and gas sector.
Speaking during a separate panel on technology-driven innovation at the conference, Chairman of Oilserv Group, Dr. Emeka Okwuosa, represented by the company’s Group Business Development and Commercial Manager, Mr. Cheta Okwuosa, said digital technologies have significantly improved safety, speed and productivity in engineering and pipeline construction projects.
He noted that Oilserv has deployed automated construction systems, artificial intelligence-powered leak detection, intrusion monitoring and remote operational technologies on major projects, including the OB3 and AKK gas pipelines.
Also speaking, Managing Director of GIL Group, Mr. Gbolahan Lawal, urged operators to replace obsolete analogue systems with modern, data-driven technologies while investing in continuous workforce training to improve industry performance.
Lead Strategic Consultant at Acepontis Ltd., Mr. Atiemoria Ebhodaghe, said the high cost of advanced technologies remains a major barrier for many indigenous marine operators. According to him, while larger operators have embraced innovations such as dynamic positioning systems, remote vessel monitoring and AI-powered predictive maintenance, smaller firms continue to struggle with the financial burden of technology adoption, limiting their competitiveness in the offshore market.