Featured, Oil & Gas
By Anthony Isibor
NNGERIA 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.
Nnamdi Anowi, General Manager, Production at NLNG, disclosed this during a 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.
According to Anowi, NLNG’s operations have not only significantly curtailed flaring but have also boosted government revenues and supported national development. He added 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.
He explained that NLNG’s gas commercialisation model is anchored on revenue certainty, which he described as 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.
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, he said, 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.
He further highlighted the need for clear and consistent government policies, enforceable contracts and comprehensive project preparation before capital commitments are made. Such measures, he said, enable financiers to provide funding at lower costs, ultimately benefiting the country.
Strong infrastructure, skilled local manpower and modern technology also play a pivotal role in reducing operational risks. Efficient pipelines, processing facilities and digital systems, Anowi noted, enhance safety, reliability and cost efficiency over the lifecycle of projects.
Looking ahead, he called for coordinated efforts across government and industry to expand proven and bankable projects that deliver measurable national value, stressing that the coming decade should prioritise investments capable of driving sustainable growth across Nigeria and the broader African energy landscape.
A.i
Feb. 12, 2026
Tags: Nnamdi Anowi SAIPEC
