NLNG Urges Global Gas Industry To Make Methane Reduction Business Priority
By Rashidat O. Okunlade| Lagos
A Business Case for Emissions Reduction
Nigeria LNG Limited (NLNG) has urged the global gas industry to make methane reduction a business priority, declaring that every tonne of methane released into the atmosphere represents lost revenue and gas that could otherwise reach the market.
The company said its experience shows that investment in reducing these losses can pay for itself while cutting emissions and improving plant efficiency, a proposition that challenges the conventional view of emissions abatement as a cost centre.
The GASTECH 2026 Platform
Adeleye Falade, NLNG’s Managing Director and Chief Executive Officer, made the call at the Gastech 2026 Exhibition and Conference in Bangkok during a panel titled “Capturing the Lost Opportunity: Driving Global Alignment on Methane Abatement Across Natural Gas Supply Chains.”
He said the NLNG approach starts with measuring methane losses and using the findings to guide investment in leak prevention and gas recovery, with independent verification to ensure credible reporting.
Shifting the Conversation: From Cost to Value
Falade said the industry needed to shift the conversation from the cost of methane reduction to the value it creates, recognising that preventing gas losses serves both commercial and environmental objectives.
“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.
The Economics: Projects That Pay for Themselves
He cited NLNG’s new boil-off gas compressor and start-up gas recovery project as examples of investments that support this approach.
Project Methane Reduction Target Financial Profile
Boil-off Gas Compressor – 10–15% Positive projected Net Present Value (NPV)
Start-up Gas Recovery Project – 10–15% Positive projected Net Present Value (NPV)
Both projects have positive projected net present values, meaning their anticipated financial benefits exceed their costs over the life of the projects.
“The most compelling business case is the simplest one: the projects that cut our methane also pay for themselves. The same discipline that reduces methane also improves asset reliability and plant efficiency. The returns show up in more places than the emissions ledger,” Falade said.
Credible Measurement as the Foundation
Falade explained that credible measurement underpins NLNG’s investment decisions, allowing the company to identify methane losses, direct resources to the right interventions, and assess results.
He said NLNG’s experience demonstrates that gas producers in developing economies can establish globally trusted emissions-reporting systems by: Investing in monitoring infrastructure, Building reporting capabilities, and Submitting data to independent scrutiny.
Africa’s First: OGMP 2.0 Gold Standard
Falade highlighted NLNG’s Gold Standard recognition under the Oil and Gas Methane Partnership (OGMP) 2.0, noting that the company was the first in Africa to achieve Level 5 methane emissions reporting.
He added that its Measurement, Reporting and Verification (MRV) system is independently assured by DNV in accordance with ISO 14064.
NLNG’s approach includes: Site-wide optical gas imaging, A structured Leak Detection and Repair (LDAR) programme, Phased deployment of continuous monitoring and real-time dashboards across its plant and vessels.
“Credible measurement is a function of commitment and not a function of geography, and NLNG has proved it can be done in Africa,” Falade said.
No Waiting for Perfect Infrastructure
Falade noted that NLNG had not waited for perfect infrastructure before taking action. It had prioritised credible measurement, invested in appropriate technology, and strengthened its reporting through independent verification.
The lesson, he said, was to raise standards across the industry rather than lower expectations for producers in emerging economies.
Train 7: Building Methane Reduction into Design
He said methane reduction was 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.
National Impact: Reducing Gas Flaring
At the national level, Falade said NLNG’s longstanding role in monetising gas that would otherwise have been flared had helped reduce Nigeria’s gas-flaring rate from over 65% to under 20%.
He described the conversion of wasted gas into a marketable product as the original commercial case for emissions abatement.
Beyond the Plant: Supply Chain Engagement
Falade added that credible emissions data increasingly matters beyond plant operations, as methane intensity influences procurement decisions, financing, and buyer confidence.
For NLNG, this means extending the discipline of measurement and reduction throughout its supply chain. Through its formal Scope 3 Advocacy Plan, the company:
Engages feed-gas suppliers and contractors to measure, disclose, and reduce emissions
Sources verified upstream emissions data from its feed-gas producers
Incorporates ESG considerations, alongside emissions criteria, into supplier selection and evaluation
A Call for Regulatory Consistency
On regulation, Falade called for greater consistency across jurisdictions, noting that differences in measurement methods and reporting requirements make enforcement uneven and meaningful comparisons more difficult.
“The industry does not need weaker standards; it needs stronger, shared ones backed by real measurement,” Falade said.
Balancing Climate Ambition and Energy Access
Addressing the balance between climate ambition, energy access, and affordability, he said NLNG’s operations support Nigeria’s goals of net-zero emissions by 2060 and zero routine flaring by 2030.
He stressed that progress on emissions reduction must go hand in hand with meeting the energy needs of households and businesses.
“Developing economies cannot be asked to choose between economic development and emissions reduction. Both must progress together,” he said.
The NLNG Formula
Falade said NLNG’s approach brings together the practical requirements of energy supply and emissions management: Measure losses credibly, Invest in recovering gas, and Apply the same standards across the value chain
Panel Participants
Falade was joined on the panel by:
Panelist Organisation
Zubin Bamji World Bank
Niels Dijksman Brunei LNG
Hiroyuki Mori JOGMEC
The session was moderated by Dr. Carole Nakhle, an energy economist with Crystol Energy.
Strategic Implications: A New Paradigm for Gas Producers
Analysts say NLNG’s positioning at GASTECH 2026 signals a significant shift in how gas producers in developing economies are approaching the energy transition.
Several factors underpin this strategic approach:
1. The Commercial Logic of Abatement
By framing methane reduction as a revenue recovery opportunity rather than a compliance cost, NLNG is making a case that resonates with CFOs as much as sustainability officers.
2. The Credibility Premium
As methane intensity increasingly influences financing and procurement decisions, credible measurement becomes a competitive advantage, not just a regulatory requirement.
3. The African Leadership Narrative
NLNG’s achievement as Africa’s first Level 5 OGMP 2.0 reporter challenges the assumption that developing economies cannot meet global standards.
4. The Energy Transition Balance
Falade’s emphasis on balancing development and decarbonisation reflects the reality that emerging economies must pursue both simultaneously, a position increasingly echoed in global climate discussions.
The Road Ahead
As the global gas industry confronts mounting pressure to reduce emissions while meeting growing energy demand, NLNG’s approach offers a template: measure credibly, invest wisely, and let the business case speak for itself.
For Nigeria, the company’s success in reducing gas flaring from over 65% to under 20% demonstrates what is possible when commercial logic aligns with environmental imperatives.
For the broader industry, Falade’s message is clear: the industry does not need weaker standards, it needs stronger, shared ones backed by real measurement.
This special report is part of ROTAMediaNews’ ongoing coverage of energy transition, gas development, and sustainability in Nigeria and Africa. Follow us for exclusive insights and in-depth analysis.
rotamedianews@gmail.com businessechomag@gmail.com
© ROTAMediaNews Digital Newspaper. All rights reserved.
