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NLNG urges commercialisation of stranded gas, operators push technology adoption – EnviroNews
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The Nigeria Liquefied Natural Gas Limited (NLNG) has called for the commercialisation of stranded gas resources, development of interconnected infrastructure and full implementation of incentives under the Petroleum Industry Act (PIA).
Mr. Timothy Fakrogha, General Manager, Commercial, NLNG, who spoke at a panel session at the Nigeria Oil and Gas (NOG) Energy Week in Abuja, underscored the need to unlock Nigeria’s gas potential.
According to him, projections indicate that by 2030, Nigeria could face a gas supply deficit despite its enormous reserves, stressing that the gap should be viewed as an opportunity rather than a constraint.
“Nigeria possesses abundant gas resources, much of them remain in speculative reserves, there is need to convert them into bankable proven reserves capable of attracting investments.
“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.
Fakrogha said that rather than individual operators building separate gas infrastructure, Nigeria should optimise its gas hubs and encourage shared infrastructure to reduce costs and accelerate development.
He cited the company’s Gas Transmission System (GTS), which aggregates supplies from multiple upstream producers, as a model for future gas development across the country.
He also urged investors to take advantage of incentives contained in the PIA and the presidential fiscal measures designed to encourage investment in non-associated gas projects.
“The window of opportunity is there, but it will not remain open forever. Investors need to move quickly,” he said.
Highlighting NLNG’s contribution to Nigeria’s domestic energy market, he said the company deliberately began supplying Liquefied Petroleum Gas (LPG) locally in 2007 and had steadily increased volumes over the years.
Fakrogha said that domestic LPG supply had grown to about 520,000 tonnes by the end of 2025 following deliberate policy decisions by the company’s shareholders to prioritise local availability.
He said that once adequate domestic infrastructure was in place, NLNG also planned to channel part of its export volumes into the Nigerian market before the end of the decade.
He welcomed the emergence of additional LNG projects across the country, saying new investments would expand both export capacity and domestic gas utilisation.
The NLNG executive also identified major gas infrastructure projects, including the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline, as critical to deepening domestic gas penetration through the development of smaller distribution networks connected to the main pipelines.
He commended regulators for policies encouraging deep offshore gas development and efforts by the Nigerian Content Development and Monitoring Board (NCDMB) to shorten contracting timelines.
According to him, both measures will accelerate new gas projects.
On domestic gas pricing, Fakrogha said it was important that regulated prices provide sufficient returns to producers to sustain investments while ensuring affordable supply to end users.
Reaffirming NLNG’s commitment to the domestic market, he said that the company currently delivered all of its designated LPG volumes within Nigeria.
“Nigeria is a gas nation. We remain committed to ensuring gas availability wherever possible while supporting national development and maintaining 100 per cent delivery of our domestic LPG obligations,” he added.
In a related development, stakeholders in Nigeria’s oil and gas industry have called for increased adoption of new technologies and sustained investment in human capacity development to improve operational efficiency and drive economic growth.
They made the call on Thursday, July 9, 2026, during a strategic panel session on “Driving Energy Innovation: Technology-Powered Pathways for Oil and Gas” at the Nigeria Oil and Gas (NOG) Energy Week in Abuja.
Chairman of Oilserv Group, Dr Emeka Okwuosa, said technology adoption must improve speed, safety and sustainability across engineering, procurement and construction (EPC) operations.
Okwuosa, represented by the company’s Group Business Development and Commercial Manager, Mr. Cheta Okwuosa, emphasised the need to deliberately develop indigenous manpower capable of deploying and managing advanced technologies.
He said Oilserv had progressed from manual operations to semi-automatic and fully automated systems, recording significant efficiency gains on projects including the OB3 and Ajaokuta-Kaduna-Kano (AKK) gas pipeline.
He said that the company had also deployed artificial intelligence (AI)-enabled leak detection, intrusion detection and remote monitoring systems to support gas commercialisation.
“In our operations, we started with manual, and then at some point we deployed the automatic system, which we started with the semi-automatic.
“The company later mastered it and deployed it in the OB3 project. With that, the company realised some gains, but not the optimum. In AKK, we used a combination of the two, the semi-automatic and the fully automatic systems.
“Now that we are veering into gas commercialisation, we have also deployed leak detection, intrusion detection, and other AI operational systems,” he said.
Also speaking, Managing Director of GIL Group, Mr. Gbolahan Lawal, urged operators to embrace data-driven innovation by replacing outdated analogue processes with modern technologies.
Lawal said continuous training and workforce empowerment were essential to improving profitability and competitiveness in the industry.
Mr. Atiemoria Ebhodaghe, Lead Strategic Consultant at Acepontis Ltd., said adoption of advanced technologies among marine logistics operators remained uneven because of financial constraints.
He said international oil companies and leading vessel owners had embraced technologies such as dynamic positioning systems, remote vessel data exchange and automated fuel optimisation to improve safety and efficiency.
He said many indigenous marine operators were unable to invest in sensor-based technologies and satellite monitoring because of high costs.
“This has created a two-tier market where technologically advanced fleets secure long-term offshore contracts, while older vessels compete for short-term jobs with higher operating costs,” he said.
Ebhodaghe said that AI-powered predictive maintenance was helping operators detect engine and equipment faults before breakdowns, thereby reducing vessel downtime and ensuring timely delivery of offshore drilling and production projects.
By Emmanuella Anokam
