Soaring gas prices driving developing countries back to dirty fuels –NLNG

By Adewale Sanyaolu

The Nigeria Liquefied Natural Gas Limited (NLNG) has warned that rising global LNG prices are repeatedly pushing developing markets back to coal and other cheaper but environmentally dirtier alternatives. The company also announced that it has initiated talks to usher in a new era of global collaboration aimed at strengthening LNG supply, improving affordability for emerging markets, and supporting energy expansion in a world increasingly shaped by geopolitical fragmentation and trade uncertainty.

Managing Director and Chief Executive Officer of NLNG, Philip Mshelbila, made these remarks while speaking on a panel titled “Energy Expansion in a Challenging Global Trade Environment” at the World LNG Summit and Awards in Istanbul, Turkey.

Mshelbila stressed that only a coordinated effort across the LNG value chain can prevent a widening energy divide and maintain natural gas as a central component of a balanced, lower-carbon global future.

“In order to safeguard global energy security from the risks of geopolitics and unilateral national or 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,” he said.

He added that global energy expansion will stall unless structural bottlenecks in LNG supply, pricing, financing, and decarbonisation are urgently addressed, warning of the negative consequences of maintaining the status quo.

Discussing shifting trade dynamics, Mshelbila noted that the LNG market has transitioned from a period dominated by short-term contracting to heightened interest in long-term commitments following the 2022 supply shock.

He emphasised that both contract types are now in strong demand due to elevated global risk and uncertainty.

Addressing how LNG can meet rising global energy demand, Mshelbila highlighted the need for availability, affordability, and decarbonisation. While many still view natural gas as a transition fuel, he said its relevance will extend well beyond the next few decades, provided the industry secures more supply, ensures improved affordability, and accelerates decarbonisation across the entire value chain.

Referencing major capacity expansions in the United States and Qatar, alongside NLNG’s Train 7 development—which will add eight million tonnes per annum of production—he cited these as examples of the supply growth required to meet future demand. However, he cautioned that affordability remains the most significant challenge facing LNG’s future.

Now in its 25th edition, the World LNG Summit continues to serve as the industry’s premier global forum, bringing together policymakers, producers, buyers, financiers, and innovators to shape the future of LNG.