…as NMDRA calls for a decarbonised economy
The group Chief Executive Officer, Nigerian National Petroleum Company Limited, Mr. Mele Kyari, has disclosed that Nigeria has no plans to quit fossil fuel soon as it remains the country’s viable natural endowment.
He made the disclosure at the 46th Annual International Conference Exhibition (NAICE, 2023) of Society of Petroleum Engineers, Nigeria Council, with the theme: Balancing Energy Accessibility, Affordability, and Sustainability: Strategic Options for Africa, held in Abuja.
Kyari said: “Nigeria is not transitioning away from the hydrocarbons; however, we hope to see an increase in the footprint of alternative cleaner energy sources in the foreseeable future amid fossil fuel dominance. We use what we have to get to our desired destination. This is the reason that NNPC Limited has identified gas as a transition fuel and we are expanding our gas development and gas infrastructure across the country to increase energy accessibility.
“Today, Nigeria has about 209.5 Trillion Cubic Feet of natural gas reserves with a potential upside of up to 600 TCF, and this is an enormous resource that would drive cleaner and affordable energy vision. Other alternative energy sources such as solar and wind are faced with technology limitations. They are still not affordable and cannot meet the high energy demands of our industries, cities and remote environments.”
He said that African countries are grappling with balancing energy accessibility, affordability and sustainability, but pointed that political will and innovations would address the challenges holistically.
The oil chief stated: “African countries grapple with strategies of balancing energy availability with meeting the United Nations Sustainable Development Goals No 7 (Affordable and Clean Energy) and No 13 (climate actions).
“This is indeed a trilemma situation and the delicate balance between political will, technological innovation, effective market mechanisms, well-crafted policy interventions, and capacity building. It also demands a multi-stakeholder approach, one that involves government, the private sector, civil society, host community and the public at large.”
He highlighted the progress Nigeria has made in energy policy formulations and transformation that has brought about sustainable growth and development.
He said: “. In the past few years, the Nigerian energy industry has witnessed strategic transformation which has given birth to a viable industry legislation, the PIA, and a long-term gas-centered energy transition plan. On the policy front, we have also seen the emergence of the incorporation of our national oil company from NNPC to NNPC Limited.
“The PIA also provides for NNPC Ltd. to engage in the renewable energy business; and the Nigerian Climate Act for mainstreaming climate change actions to achieve low emissions, inclusive green growth, and sustainable economic development.”
Also, in a goodwill message to the Petroleum professional body (SPE) Nigeria Council, the Chief Executive of Nigeria Mainstream Downstream Regulatory Authority (NMDRA), said energy sector in Nigeria and indeed, Africa is facing an existential challenge and urgently needed to transit from fossil fuel economy to a decarbonised one.
He said: “Africa as a continent, still grapples with energy poverty and security, where about 60% of the populace lacks access to energy and clean cooking fuel. The energy sector in Nigeria and across Africa faces an existential challenge of the urgent need to transit from a fossil fuel dependent economy to a decarbonized economy.
“There is more to energy transition than decarbonization in our region as millions of people in sub-Sharan Africa still live or are living without access to electricity while some only have access to very limited or unreliable electricity. This is amidst old and insufficient infrastructure, growing energy demand with few energy sources, a vibrant young population and the list goes on. Economic prosperity is deeply dependent on energy access and consumption and as most of us know, this is the challenge for most countries in African.
“Currently, environmental sustainability is majorly driving the energy transition, but transition to a decarbonized system can only be successful if it simultaneously provides access to affordable energy, facilitates economic growth and development along with environmental sustainability.”
The regulator extolled the professional Petroleum Engineers and challenged them on constant collaboration with various stakeholders that would boost energy growth and development.
The NMDRA helmsman said: “I would like to encourage all industry stakeholders and this professional body (SPE) Nigeria Council to contribute to ensuring the provision of affordable, clean, and efficient energy options to our stakeholders comprising over 200 million Nigerians, under a just and equitable transition.
“This includes not only our efforts in harnessing the existing energy resources but also in innovative research, development, and adoption of new and emerging technologies in the energy sector.
“Our collective success will be defined by how we deliver affordable wide range of energy sources sustainably.”