BY SAM OTUONYE
… As NCCC launches Long-term Low Emission Development Strategy
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has reiterated the need for an equitable and sustainable global energy transition in consideration to individual country peculiarities.
The Commission Chief Executive (CCE), Engr. Gbenga Komolafe re-echoed the call on the sidelines of the United Nations Conference on Climate Change 2023, tagged COP28, holding in Dubai, the United Arab Emirates.
The CCE, in his paper titled: ‘Driving Sustainable Upstream Operations to Achieve Just and Equitable Energy Transition, noted that the Nigerian oil and gas emission reduction targets were set at a 60% reduction in fugitive methane emission by 2031 and zero gas flaring in 2030 as part of the ambitious transition path defined for achieving national climate neutrality by 2060.
“These mitigation measures have further been emphasized in Nigeria’s Long-Term Low Emission Development Strategy, launched at this Conference on Friday, 1st December 2023 by the National Council on Climate Change (NCCC).
“Whereas the global imperatives may be perceived to be driven primarily by climate and environmental actions, the impacts of energy geopolitics and global resource control cannot be overlooked. Thus, the evolving dynamics must be calibrated against geography, history, and politics as well as the need for energy justice, equity, inclusivity, and sustainability, he insisted.
He continued, “Remarkably, global leaders at various fora, including the May 2023 G7 Ministers Summit held in Japan, September 2023 G20 New Delhi summit, and the 78th Session of the United Nations General Assembly, upheld that “national circumstances” will be factored into the phasing down of fossil fuels. The IEA World Energy Outlook 2023 aptly sums it up in this manner: “Every country needs to find its own pathway, and it needs to be inclusive and equitable to secure public acceptance.
“The stance of world leaders was in recognition of the impacts of the unprecedented global energy crisis which has derailed the global energy transition plans. Interestingly, the blueprint of country-tailored pathways to transition aligns perfectly with Nigeria’s position on “just and equitable transition”.
“While the global imperatives for energy transition are clear and justified, the need for energy security, economic development, and prosperity are more compelling. For us in Nigeria, energy transition presents grand opportunities to mobilize our resources to deepen energy security in an environmentally sustainable manner.”
Engr. Komolafe highlighted Nigeria’s immense potential in the energy mix, maintaining that its contribution to the global energy landscape is imperative, wooing investors to leverage the opportunities.
He said: “The nation is blessed with potentials for green and blue hydrogen, solar, wind, biomass, and other renewable sources as well as the availability of critical minerals that support accessories for renewables and clean energy technologies. This underscores the immense potential of Nigeria to contribute to the evolving global energy landscape for economic prosperity and sustainability.
“Consequently, as the regulator and business enabler, the Nigeria Upstream Petroleum Regulatory Commission is leveraging the opportunity of rising global energy demand to position the Nigerian upstream sector for decarbonization to meet national aspirations.”
“Distinguished Stakeholders, the future we foresee for the petroleum industry should assure for the utilization of Nigeria’s endowed natural hydrocarbon resources for shared prosperity, energy accessibility, sustainability, and security. Those are the cardinal pillars of the Nigeria Energy Transition Plan upon which basis the Nigerian Government declared natural gas as transition or bridge fuel.
“In the same vein, the Government has initiated the Decade of Gas program to actualize the objectives of unlocking investments required to grow gas production from an average of 7.0 bcfd in 2023 to 12 bcfd in 2030 to be driven by major projects such as NLNG Train 7 & 8, Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline Project and the Nigeria – Morocco Gas Pipeline, and so forth.
“Based on projected gas demand, significant opportunities for participation exist for both existing investors and new entrants. We expect that international investors will support Nigeria’s gas journey in its energy transition pathway. Similarly, we are implementing the green story in Field Development Plans (FDPs) to integrate decarbonization measures and adherence to ESG principles in upstream development.
He listed fiscal incentives in Nigeria’s Petroleum Industry Act which investors stand to benefit including; zero-hydrocarbon tax for deep water developments, reduced royalty rates based on production and terrains, and tax consolidation provisions amongst others.
He further stated: “In addition, the Commission has intensified efforts towards eliminating flared gas while arresting methane and other fugitive gas emissions, by commercializing forty-nine (49) flare sites through the Nigerian Gas Flare Commercialization Program (NGFCP).
“Further investment opportunities are also available in ongoing and future licensing rounds for oil and gas blocks, seismic acquisition on a multiclient basis, development of deeper hydrocarbon opportunities, carbon markets, evacuation logistics, IT and surveillance infrastructure, etc. Each of these areas provides a unique entry point for willing investors and are essential component of our national architecture for sustainable energy infrastructure development.
“This program is a major platform for Nigeria to showcase its commitment towards zero-emission by 2060. In this regard, as a Commission, we are happy to showcase at this forum that significant progress has been recorded in the implementation of the NGFCP. With the emergence of Awardees, the successful entities are progressing toward the conclusion of commercial agreements and commencement of project execution. This is a major win in Nigeria’s energy transition pathway. Upon completion, we estimate a reduction of about 500 MMscfd of flare gas, representing 50% of current flare disposition, which is equivalent to 6 Million tonnes of CO2 emission per year.
“Permit me at this point to recognize and appreciate the considerable support of international partners and collaborators such as the USAID, World Bank GGFR, US Net Zero World (NZW), and other development agencies that have supported our implementation efforts. We have likewise recorded progress in new partnerships with the South Korean, Norwegian, and German Authorities on the Programme and similar decarbonization initiatives.
“Also it is important at this point for us at this forum as a Commission to make a clarion call on the investors, multilateral organizations, international financiers, technical service providers, and partner entities to collaborate with the Commission and to enhance their support as flare-out projects are being consummated and developed.
“To this end, the Commission calls on all well-meaning Partners to deepen support for the program toward full value realization through:
Technical support
Financing & Funding
Collaboration for carbon credit earning framework as a major climate action for Nigeria.
Capacity Building
Together we can succeed in delivering this major climate action project for Nigeria.
“Distinguished ladies and gentlemen, by the same token, the Commission is championing the decarbonization of upstream operations to sustain investments for energy security and economic development for Nigeria and benefits for other stakeholders while adhering to ESG principles. Thus, the Commission, collaborating with industry and relevant stakeholders, has formulated a Regulatory Framework to guide the decarbonization of upstream operations and carbon monetization anchored on seven (7) critical Pillars.
“I am also pleased to unveil at this Forum the Regulatory Framework for Energy Transition, Decarbonisation & Carbon Monetisation for Upstream Operations in Nigeria. I call on stakeholders, government agencies, operators, and international collaborators to join us as we progress toward the steady implementation of the Framework within the coming months, which will be underpinned by Directives, Guidelines, and Regulations.
“Interestingly, the implementation of the Regulatory Framework has already commenced on the heels of the issuance of the 2022 Guidelines for Management of Fugitive Methane and Greenhouse Gases Emissions in the Upstream Oil and Gas Operations in Nigeria, which was launched at COP27.
“Similarly, the introduction of the Gas Flare, Venting & Methane (Prevention of Waste & Pollution) Regulations 2023 provides the renewed legislative basis to take firm actions on gas flaring, venting, and fugitive emissions. As a signatory to the Global Methane Initiative (GMI), Global Methane Alliance (GMA), and the Global Methane Pledge (GMP).
“To guarantee social inclusion and foster a harmonious relationship in producing areas the Commission is administering the Host Community provisions of the PIA and has already incorporated 85 HCDTS to attract the dividends to the Host Communities.”