Criminal gangs, pushed by increased security on crude oil pipelines, are now stealing condensate from gas pipelines, causing a significant drop in Nigeria’s liquefied natural gas (LNG) exports, according to recent reports. The shift in criminal activity poses a serious threat to the country’s energy sector and future investments.
For decades, oil theft has plagued the Niger Delta region. However, a recent government crackdown on crude oil theft has driven criminal groups to target gas pipelines, where they extract condensate, a valuable hydrocarbon that is easier to process in makeshift refineries. This dangerous operation involves tapping high-pressure pipelines, creating a significant risk of explosions and fires.
The surge in condensate theft has severely impacted the supply of gas to Nigeria LNG Ltd. (NLNG), a major player in the global LNG market. This has led to a dramatic decline in LNG exports, raising concerns about the reliability of Nigeria’s energy supply and its ability to meet international contracts.
Experts warn that the ongoing theft could deter future investments in Nigeria’s gas industry, particularly as global competition for LNG projects intensifies. The sophisticated engineering skills displayed by the thieves, who install valves to reduce pressure before tapping pipelines, highlight the growing complexity of the problem.
While the government has acknowledged the issue and is working with NLNG to strengthen security, details of these efforts remain limited. The situation underscores the need for a comprehensive strategy to combat pipeline theft, one that addresses both the immediate security concerns and the underlying socio-economic factors driving criminal activity in the region.
Credit: Bloomberg (Text Excluding Headline)
