KEY POINTS
- NLNG says methane cuts can recover lost gas and raise revenue.
- Its projects target methane reductions of about 10% to 15%.
- NLNG wants stronger, shared methane measurement standards globally.
Nigeria LNG Limited, NLNG, has urged gas producers to treat methane reduction not only as an environmental responsibility but also as a commercial opportunity that can increase revenue, recover lost gas and improve operational efficiency.
The company said methane released during gas production, processing and transportation represents valuable gas that could otherwise be captured, sold and converted into revenue.
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 discussion titled “Capturing the Lost Opportunity: Driving Global Alignment on Methane Abatement Across Natural Gas Supply Chains.”
Falade said the gas industry should move away from viewing methane reduction mainly as an additional cost and instead recognise the financial value of preventing gas losses.
Methane reduction can pay for itself
According to Falade, NLNG’s experience shows that investments in methane reduction can deliver both environmental and financial benefits.
He explained that the company begins by measuring methane losses across its operations and then uses the data to determine where investments in leak prevention, gas recovery and other interventions would deliver the greatest value.
“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,” Falade said.
He cited NLNG’s new boil-off gas compressor and start-up gas recovery project as examples of investments designed to achieve this dual benefit.
The two projects are expected to reduce methane emissions by about 10% to 15% each and have positive projected net present values, meaning their expected financial returns are higher than their costs over their operating lives.
Falade said the financial benefits of methane reduction could extend beyond emissions performance by improving equipment reliability, plant efficiency and the amount of gas available for sale.
Falade said reliable measurement must form the foundation of any serious methane reduction programme.
He explained that accurate data allows gas producers to identify where methane is being lost, direct investment towards the most effective interventions and determine whether those measures are delivering the expected results.
NLNG has adopted site-wide optical gas imaging, a structured Leak Detection and Repair programme and the phased introduction of continuous monitoring systems and real-time dashboards across its facilities and vessels.
