NLNG sees gas supply improve on renewed fight against crude oil theft

The Nigeria Liquified Natural Gas, Limited (NLNG) is hopeful that it will receive more gas supply from its suppliers following successes recorded in renewed effort by the Nigerian National Petroleum Company Limited (NNPC) to combat crude oil theft.

The NLNG, said the effort is yielding results with improvement in key crude oil transportation pipelines.

The NLNG spokesperson, Andy Odeh, confirmed that the success was recorded after NNPC increased surveillance and the fight against oil thieves and vandals.

“We have begun to see improvement in the availability of key crude oil transportation trunklines,” Odeh said, adding, “If this trend is sustained, we expect it will support improved gas supply to NLNG once currently flooded oil and gas infrastructures becomes accessible,” Nigeria loses 700 barrels per day to crude oil thieves amounting to $70m daily at $100/barrel.

Crude oil theft has forced Nigeria to slack in meeting its 1.8 million OPEC quota, while production remained below one million barrels daily.

The incidents have complicated the country’s foreign exchange woes as Nigeria relies on crude oil sales as a major contributor to its forex earnings.

To combat the challenge, the NNPC Ltd launched a new Hydrocarbon Infrastructure Security Architecture which recognizes the important role of the Host Communities in dealing with oil theft.

It awarded contracts to private security after consulting with community leaders, notably ex-militant, Mr. Government Ekpemupolo, alias Tompolo.

Since the award, the NNPC has uncovered many illegal pipelines and arrested oil thieves.

The NNPC Ltd had in partnership with government and private security agencies uncovered an illegal oil pipeline used by criminals to steal crude oil from Forcados Terminal in Delta State in October.

In October, the company intercepted and arrested a vessel loaded with stolen crude in the creeks of Warri in Delta State. The stolen crude was discharged in Tema, Ghana.

The Chief Upstream Investment Officer, NNPC Upstream Investment Management Services (NUIMS), Bala Wunti had said during the interception of the ship that with the detection, the country would begin to witness improved oil supply.

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