Nigeria LNG Limited (NLNG) has called on global energy stakeholders to strengthen collaboration in order to stabilise liquefied natural gas (LNG) supply, improve affordability for developing nations, and ensure long-term energy growth in an increasingly fragmented global landscape.
Speaking at the World LNG Summit & Awards in Istanbul, Turkey, the company’s Managing Director and CEO, Philip Mshelbila, addressed the theme, “Energy Expansion in a Challenging Global Trade Environment.” He cautioned that without coordinated efforts across the LNG value chain, the world risks widening the energy gap, weakening energy security, and slowing the transition toward a balanced, lower-carbon energy mix.
Mshelbila argued that today’s geopolitical tensions, unilateral national decisions, and sanctions necessitate a new approach to LNG contracting, one that goes beyond traditional pricing and volume arrangements. According to him, LNG agreements must start incorporating mechanisms to manage sovereign risk, including diversified supply sources, flexible delivery options, and adaptable contract terms.
He further warned that global energy expansion could stall unless critical issues around LNG supply, pricing, financing, and decarbonisation are urgently resolved. Developing economies, he said, remain most vulnerable to volatile gas prices.
Reflecting on trends since the 2022 supply shock, Mshelbila noted a resurgence in demand for long-term LNG contracts, even as short-term deals remain appealing. This shift toward a mixed contracting landscape, he explained, is driven by global uncertainty and the need for both buyers and producers to secure supply stability.
To meet rising global energy demand, he emphasised the need to reinforce three key pillars: availability, affordability, and decarbonisation. While natural gas is often viewed as a transitional energy source, its significance will endure well into the future if these areas are adequately strengthened.
Mshelbila highlighted major LNG expansion projects underway in the United States and Qatar, along with NLNG’s own Train 7 project—which will add eight million tonnes per annum to its production capacity—as crucial to meeting anticipated long-term demand.
Despite these growth efforts, he warned that affordability remains LNG’s greatest hurdle. Persistently high prices, he noted, have pushed several developing countries back to cheaper but dirtier fuels like coal, undermining global climate goals.
Now in its 25th year, the World LNG Summit remains a leading global platform for industry players—including policymakers, producers, buyers, financiers, and technology experts—to shape the future of LNG amid rising geopolitical and economic challenges.
