Pipeline vandalism hits NLNG gas supply, threatens FG’s dividend

The rising pipeline vandalism and oil theft in Nigeria are limiting the volume of gas the Nigeria LNG Limited (NLNG) can supply to the domestic and international markets, threatening the N187 billion dividend expected by the Federal Government from the company this year, BusinessDay has learnt.

The NLNG, which is jointly owned by the Federal Government and three international oil companies, was established in 1989 to harness Nigeria’s vast natural gas resources and produce Liquefied Natural Gas and natural gas liquids for export but it started operations in 1999. It also supplies Liquefied Petroleum Gas, also known as cooking gas, to the domestic market.

The Nigerian government received a dividend of N208.5 billion from the NLNG in 2021, according to data from the budget office. The country has received over $18.3 billion in dividends in the last two decades.

According to correspondents NLNG’s gas supply has hit a record low on the back of rising pipeline vandalism and theft.