NLNG Sees Methane Reduction as Major Revenue Stream

Nigeria LNG (NLNG) has identified methane reduction as a major revenue stream for gas producers, not just an environmental imperative. According to NLNG's Managing Director and Chief Executive Officer, Adeleye Falade, every tonne of methane released into the atmosphere represents lost revenue and gas that could otherwise reach the market.

The company has made significant investments in reducing methane losses, including a new boil-off gas compressor and start-up gas recovery project. Both projects have positive projected net present values, meaning their anticipated financial benefits exceed their costs over the life of the projects.

NLNG's approach to methane reduction is built on credible measurement, which allows the company to identify methane losses and direct resources to the right interventions. The company's experience demonstrates that gas producers in developing economies can establish globally trusted emissions-reporting systems by investing in monitoring infrastructure and submitting their data to independent scrutiny.

Falade emphasized that NLNG has not waited for perfect infrastructure before taking action, prioritizing credible measurement and investing in appropriate technology. He noted that methane reduction is also being built into the design of NLNG's Train 7 project, which will increase LNG production capacity from 22 million to 30 million tonnes per annum.