The Managing Director and Chief Executive Officer of NLNG, Philia Mshelbila has called for deliberate efforts for the displacement of dirtier fuels, like biomass, by natural gas to drive energy transition in Africa.
Mshelbila made the call during a panel session titled “Diversity of Gas Development Globally” at the 29th World Gas Conference in Beijing, China which held from 19th May to 23rd May 2025.
He remarked that the most important factors for energy, especially natural gas, were availability and affordability, stressing the need to solve infrastructure challenges to ensure that critical energy is getting to where it’s needed, at affordable rates. .
“Today, Africa’s population is about 1.4 billion, and most people still use biomass for cooking and liquid fuels for transportation. Power generation comes from a mix of hydro, natural gas, and, in many cases, diesel. This is where natural gas has a major opportunity, to displace dirtier fuels. Africa’s population is expected to grow to 2.5 billion in the next 25 years, adding over a billion people. For the existing population, we need to shift from biomass to gas.
For the next billion, we must ensure that natural gas becomes the primary energy source before transitioning to renewables.
But none of this will happen without solving access and affordability,” he said.
Mshelbila emphasised the significance of Nigeria’s Decade of Gas initiative as a strategic pathway for replacing high-emission fuels with cleaner low carbon fuels.
“The Decade of Gas is Nigeria’s strategic roadmap to replace high-emission fuels with cleaner, more affordable gas solutions. Gas is not just a bridge; it is a foundation for achieving energy access, industrialisation, and environmental sustainability.
“For the past 25 years, there’s been significant focus on exports because the country needed the revenue, which is critical for development.
However, domestic utilisation has lagged. The Decade of Gas looks at supply, demand, infrastructure, and commercial frameworks to unlock gas utilisation. Considerable work has gone into removing bottlenecks and challenges that have hampered gas utilisation, both for domestic use and export.
“One example is the push for Compressed Natural Gas (CNG) in transportation, which is now gaining momentum.
Another focus area is LPG, which NLNG has spearheaded. We have decided that our production of over 500,000 tonnes per annum will be entirely deployed for domestic use.
The goal is to displace biomass and kerosene used for cooking. This isn’t just about the cleanliness of natural gas, it’s also about addressing health issues related to indoor air pollution, which causes over 100,000 deaths annually among women and children. All these aspects are part of the Decade of Gas initiative. Our aim is that by 2030, we will have significantly increased natural gas utilisation to displace dirtier fuels and create a new foundation for future growth,” he added.
Addressing the continent’s diverse energy landscape, Mshelbila underscored the need for localised solutions. He said while countries such as Nigeria, Algeria and Egypt possess abundant reserves, gas utilisation rates remain low due to a lack of enabling infrastructure and policy clarity.
He called for deliberate policies to foster infrastructure expansion, local content development, and innovation.
“From a developing world perspective, I believe it starts with creating the right investment environment. We speak from real experience here. Although we have had natural gas for decades, it was only last year, as part of the Decade of Gas initiative, that we established clear fiscal terms for deepwater gas. Before that, investors took on significant risks because the fiscal terms weren’t defined. This is a clear example of government providing necessary clarity, so investors know exactly what they’re committing to.
Mshelbila stated that infrastructure development could be driven by policy and emphasised that the right investments could promote gas infrastructure expansion. On pricing, he expressed complete opposition to government price regulation.
However, he acknowledged that significant vulnerable populations in the developing world needed protection.
He stressed the importance of ensuring affordability and access to natural gas for these groups.
On the conversation on energy transition and sustainability, he stated that policy played a crucial role, noting that policies varied globally with the EU leaning toward regulation and the US favouring incentives.
He added that there was a role for policy in stimulating the energy transition appropriately, though the approach would differ across regions.
Mshelbila was on the panel with Jack Fusco, President and CEO of Cheniere, U.S.A, Peter Wong, Managing Director of Hong Kong and China Gas Company Limited and Andrea Stegher, Senior Advisor at SNAM and Vice President of the International Gas Union, organisers of the conference.
