The Nigeria Liquefied Natural Gas (NLNG) Limited has called for a new era of global cooperation across the LNG value chain to ensure sustainable energy security, improve affordability for emerging economies, and maintain natural gas as a central component of a balanced global energy mix, reports ITREALMS.
Mshelbila strongly asserted that only a coordinated effort can prevent a widening energy divide and safeguard the role of natural gas in a future increasingly defined by geopolitical fragmentation and trade uncertainty.
He stressed that securing global energy security from the risks of geopolitics, national policies, and sanctions demands a fundamental evolution in how business is conducted.
“In order to safeguard global energy security from the risks of geopolitics and unilateral (national and regional) policies and sanctions, LNG contracts must evolve from merely defining volume and price to actively managing sovereign risk, through diversification of supply sources, delivery routes and contract terms,” Mshelbila stated.
He warned that global energy expansion will stall unless structural bottlenecks concerning LNG supply, pricing, financing, and decarbonisation are urgently addressed.
Analyzing trade dynamics, the NLNG CEO noted the shift from short-term contracting back to heightened interest in long-term commitments, especially following the 2022 supply shock. Both contract types, he said, are now in strong demand, a direct result of elevated global risk and uncertainty.
Addressing how LNG can sustainably meet rising global energy demand, Mshelbila identified three foundational elements that must be secured: availability, affordability, and decarbonisation.
He clarified that while natural gas is often labeled a "transition fuel," its relevance will extend significantly beyond the next few decades. To realize this long-term potential, the industry must prioritize securing more supply, ensuring improved affordability, and accelerating decarbonisation efforts across the entire value chain.
Mshelbila cited major capacity expansions, including the NLNG’s own Train 7 development—which will add eight million tonnes per annum (MTPA) of new production—alongside projects in the United States and Qatar, as essential supply growth needed globally.
However, he cautioned that affordability remains the most challenging dimension, noting that high prices have repeatedly forced developing markets to revert to cheaper but environmentally dirtier alternatives like coal.
The World LNG Summit, now in its 25th year, continues to serve as a pivotal global gathering for policymakers, producers, buyers, and financiers to collectively shape the future of the LNG industry.
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