The Nigeria LNG Limited, (NLNG) has reduced Nigeria’s gas flaring from about 62 per cent to less than 12 per cent through its Train 1–6 operations, positioning the company as a leading model of gas monetisation in Africa.
The General Manager, Production at NLNG, Mr. Nnamdi Anowi, told the panel session titled “De-Risking Investments in African Oil and Gas Projects” at the Sub-Saharan Africa International Petroleum Exhibition and Conference (SAIPEC) in Lagos that the NLNG’s operations have not only significantly curtailed gas flaring, but has also boosted government revenues and supported national development.
He stated that the company is considering the development of Trains 8 and 9 as part of efforts to further monetise Africa’s abundant natural gas resources and consolidate development gains.
According to him, the NLNG’s gas commercialisation model is anchored on revenue certainty, which is fundamental to de-risking large-scale energy investments.
“For example, with Train 7, investors needed absolute clarity on revenue sources. Without long-term gas delivery contracts, no investor would commit funds to such a project,” he said.
He stressed that governance and institutional credibility are equally critical, noting that investors must have confidence in a company’s strategy, leadership and technical capacity before committing capital.
Speaking on project execution, Anowi emphasised the importance of structured construction models that shift risks away from company balance sheets through firm contractual arrangements that guarantee delivery timelines and cost discipline.
He added that proper scoping and detailed design work must go beyond preliminary stages to provide investors with the assurance needed to finance projects.
Addressing the broader issue of energy transition, Anowi argued that Africa’s pathway must be just and pragmatic, focused on decarbonisation without undermining development.
“Energy transition in the African context means energy addition,” he said, explaining that the continent must expand its overall energy supply to meet growing demand.
He noted that global energy discourse is increasingly shaped by rising electricity needs, particularly from data centres, which require substantial and stable power supply.
Renewable energy alone, according to him, cannot meet this expanding demand, underscoring the need for Africa to responsibly develop its natural gas resources.
Anowi warned that when oil and gas projects are perceived as excessively risky, investors withdraw, leading to stalled developments, job losses and foregone revenues critical to national growth.
He described risk reduction in the oil and gas sector as a national economic priority, linking it directly to Nigeria’s energy security and long-term development.
For NLNG, he explained, de-risking translates into maintaining reliable gas supply, honouring long-term contractual obligations, and preserving its reputation as a dependable supplier to both domestic and international markets.
GIK/APA