Nigeria urges its largest gas company to stop lagging behind and start taking advantage of opportunity presented by Europe's gas crisis – Business Insider Africa

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As gas supply to the European Union continues to face uncertainty amid the Russian-Ukrainian war, the Nigerian Government has asked stakeholders of its largest gas company —Nigeria NLG Ltd (NLNG) —to stop crippling efforts to boost exports to EU countries.
Business Insider Africa understands that Total Energies, ENI SpA, Shell and other stakeholders in Nigeria NLG Ltd have been refusing efforts that could boost gas supply to the EU, by turning down feedstock from smaller Nigerian gas producers.
READ: Nigeria’s state-owned oil company NNPC cannot account for what happened to over 107 million barrels of crude oil
Nigeria’s Minister of State for Petroleum Resources, Timipre Silva, said in a statement that the NLNG could contribute significantly towards easing Europe’s gas burden, if only other producers of liquified natural gas are allowed to supply their own feedstock.
The Minister therefore urged the stakeholders of the NLNG to do everything possible to help the European Union meet its energy needs, as the region continues to make efforts to drastically reduce its dependence on Russian gas.
READ: Focus on Nigeria’s ambitious plan to curb crude oil theft and plug revenue losses
Do note that Nigeria NLG Ltd is a joint venture between the aforementioned oil companies (i.e., Total Energies, Shell, etc) and the state-owned Nigerian National Petroleum Corporation.
According to Bloomberg, the NLNG has standing contracts to supply gas to Spain, Portugal, France and Belgium. However, the company currently produces about 70% of its installed capacity of 22 million tons per annum. What this means, therefore, is that the company is unable to produce enough LNG to meet local demands and export to Europe.
READ: Here are 10 African countries with the largest crude oil production output in 2021
Recall that Nigeria is the largest crude oil producer in Africa, with an average daily production output of 1.27 million barrels. Unfortunately, the country’s estimated 200 trillion cubic feet of gas reserves are hardly exploited, even as huge volumes are flared in the course of crude exploration.
Exporting more of the natural gas to the EU would not only help the region to successfully shift away from their Russian dependence, but also help Nigeria to earn more foreign exchange at a time when the economy desperately needs more dollar inflows.
READ: Tony Elumelu and other oil magnates in Nigeria cry out, as huge volumes of crude oil are stolen from major pipeline
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