NLNG PUTS METHANE REDUCTION AT HEART OF GAS INDUSTRY’S COMMERCIAL STRATEGY

 

NLNG PUTS METHANE REDUCTION AT HEART OF GAS INDUSTRY’S COMMERCIAL STRATEGY



....cutting methane losses can unlock revenue, improve efficiency and strengthen Nigeria’s gas competitivenes -Falade




By Hypenews Reports 

The Nigeria LNG Limited (NLNG) has called on the global natural gas industry to reposition methane reduction from an environmental obligation into a core commercial strategy, stressing that every tonne of methane lost represents both foregone revenue and energy that could otherwise be delivered to the market.


NLNG Managing Director and Chief Executive Officer, Adeleye Falade, made the call at Gastech 2026 Exhibition and Conference in Bangkok, where he participated in a high-level panel titled “Capturing the Lost Opportunity: Driving Global Alignment on Methane Abatement Across Natural Gas Supply Chains.”


Falade said NLNG’s experience demonstrates that methane abatement can deliver measurable environmental gains while generating commercial value through gas recovery, improved asset reliability and greater operational efficiency.


“Every tonne emitted is lost product, lost revenue and lost energy; gas we could have sold. Every molecule of methane avoided is both an emissions reduction and a recovered energy resource,” he said.


According to Falade, NLNG’s strategy begins with credible measurement of methane losses, followed by targeted investment in leak prevention, gas recovery and operational improvements.


He cited the company’s new boil-off gas compressor and start-up gas recovery project as examples of investments designed to simultaneously reduce methane emissions and improve commercial performance.

Each project is projected to deliver methane reductions of approximately 10–15 per cent, while recording positive projected net present values, indicating that the anticipated financial benefits are expected to outweigh project costs over their operating lifetimes.
“The most compelling business case is the simplest one: the projects that cut our methane also pay for themselves,” Falade said.


He added that the financial benefits extend beyond emissions performance, noting that the same interventions can contribute to asset reliability and overall plant efficiency.

Falade emphasised that credible measurement, reporting and verification (MRV) is central to effective methane management, enabling operators to identify losses, prioritise investments and demonstrate measurable results.

He said NLNG’s experience shows that producers in developing economies can establish emissions-reporting systems that meet international expectations through investment in monitoring infrastructure, reporting capabilities and independent verification.


NLNG has achieved Gold Standard recognition under the Oil and Gas Methane Partnership (OGMP) 2.0 and became the first company in Africa to achieve Level 5 methane emissions reporting.
Its MRV system is independently assured by DNV in accordance with ISO 14064 standards.


The company’s methane-management programme includes site-wide optical gas imaging, a structured Leak Detection and Repair (LDAR) programme, and the phased deployment of continuous monitoring systems and real-time emissions dashboards across its plant and vessels.
Falade said credible methane measurement should be viewed as a function of institutional commitment and technological investment rather than geography.
“Credible measurement is a function of commitment and not a function of geography. NLNG has proved it can be done in Africa,” he said.

Methane Reduction Embedded in Train 7
He further disclosed that methane-reduction measures are being incorporated into the design and development of NLNG Train 7, which is expected to increase the company’s LNG production capacity from approximately 22 million tonnes per annum to 30 million tonnes per annum.


Falade said the approach reflects a broader strategy of integrating emissions management into the design and operation of major gas infrastructure rather than treating it as a separate environmental activity.


Nigeria’s Gas-to-Market Opportunity
At the national level, Falade highlighted NLNG’s longstanding role in converting natural gas that might otherwise have been flared into commercially valuable LNG.


He added the development of Nigeria’s LNG industry has contributed to the reduction of the country’s gas-flaring rate from more than 65 per cent to below 20 per cent, describing the conversion of previously wasted gas into marketable energy as an early example of the commercial case for emissions abatement.


He stressed that methane performance is increasingly relevant beyond individual production facilities, as emissions intensity is becoming an important consideration in procurement, financing and buyer confidence.

Falade said NLNG is extending its methane-management approach across its wider value chain through a formal Scope 3 Advocacy Plan, under which the company engages feed-gas suppliers and contractors to measure, disclose and reduce emissions.

NLNG also obtains verified upstream emissions data from its feed-gas producers and incorporates environmental, social and governance considerations, including emissions performance, into supplier selection and evaluation.

The approach, he said, reflects the growing importance of supply-chain emissions transparency in international energy markets.
Call for Harmonised Global Standards
On regulation, Falade called for greater consistency in methane measurement and reporting requirements across jurisdictions.

He noted that differences in methodologies and regulatory requirements can make enforcement uneven and complicate meaningful comparisons of emissions performance between operators and markets.
“The industry does not need weaker standards; it needs stronger, shared ones backed by real measurement,” he said.


Falade also stressed the need for developing economies to pursue emissions reduction alongside economic growth, energy security and affordability.
He said NLNG’s operations support Nigeria’s national objectives of achieving net-zero emissions by 2060 and zero routine gas flaring by 2030, while continuing to contribute to the country’s energy and economic needs.


“Developing economies cannot be asked to choose between economic development and emissions reduction. Both must progress together,” he said.
Falade said NLNG’s approach ultimately rests on three principles: measure losses credibly, invest in recovering valuable gas, and apply consistent standards across the entire value chain.

The Gastech panel also featured Zubin Bamji of the World Bank, Niels Dijksman of Brunei LNG and Hiroyuki Mori of JOGMEC. The session was moderated by Dr. Carole Nakhle, an energy economist with Crystol Energy.




— HYPE.NEWS