Saturday, 28th January 2023
Breaking News:

Monetising 60% of flared gas pushes Nigeria towards net-zero goals

By Femi Adekoya
08 September 2022   |   4:31 am
By monetising over 60 per cent of flared gas through its different trains, Nigeria LNG Limited, yesterday, said Nigeria was already on the path to achieving its energy transition goals.

Nigeria LNG Limited

LNG to power remains untapped

By monetising over 60 per cent of flared gas through its different trains, Nigeria LNG Limited, yesterday, said Nigeria was already on the path to achieving its energy transition goals.

According to the firm, energy transition does not have to be a huge leap, adding that getting out of dirty fuels and flare reduction are steps in the right direction.

In a country with a huge energy deficit, NLNG’s Managing Director, Philip Mshelbia, noted that reducing carbon footprint starts by providing cleaner alternative energy sources for a population that depends on dirty fuels.

To him, monetising associated gas has helped Nigeria to reduce flares, provide thought leadership on the decade of gas agenda and generate revenue for investment in critical infrastructure to improve the wellbeing of the people.

Speaking on the sidelines of this year’s ongoing GASTECH exhibition and conference in Milan, Italy, Mshelbia added that in line with its goal, the company was equally committed to supplying 100 per cent of its Liquefied Petroleum Gas (LPG) production to the domestic market to support the growth of LPG utilisation in the country and help reduce the health, safety and environmental risks associated with the use of other domestic fuel sources.

Speaking on ‘Concerted industry action on ending energy poverty’, he added that through the supply of LPG, NLNG prioritised the supply of clean energy in Nigeria, while working collaboratively with the government to grow LPG consumption in Nigeria as part of the national journey to a clean energy future.

“We also expanded our capability in running our plants to generate electricity. We generate over 300MW of electricity to power our community on the Island from where we operate,” he added.

Meanwhile, the Minister of State for Petroleum Resources, Timipre Sylva, has said Nigeria is positioning to become a major gas supplier to Europe following the global energy crisis caused by the ongoing conflict between Russia and Ukraine.

The minister, during a panel session on the topic: “Just Energy Transition for Developing Nations”, maintained that funding for gas development at this point was a win-win for Europe and Africa.

“Today we are seeing gas being weaponised and every country will at least require some alternative supply.

“We believe that Europe needs this gas and it is a win-win for all of us and it is in their interest to reduce this discriminatory investment that their banks are doing.”

For the Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Simbi Wabote, despite the global energy crisis, the investment opportunities for Africa, especially as regards LNG-to-lower, remain enormous and yet untapped.

He said, “NLNG exports our gas and they said the gas they produce is open to all kinds of the market including that of the LPG. We have not invested enough in utilizing LNG for power.

“The discussions have always been around investing in power plants that use natural gas, not liquefied natural gas. The potential for LNG to power is huge. If those investments are there and NLNG sees off-takers, they would sell. The business is to sell the LNG that is produced and not to keep them.

“Currently we have not explored the possibility which does exist in procuring LNG for power generation. Today, the only thing we off-take from NLNG is LPG, which is also part of the by-products. Most of the domestic LPG is produced by NLNG today; that informs their commitment to the domestic market. If there are investments in power plants that will utilize LNG for power, they would sell.”

He added that “There is energy poverty and we need to harness what we have to be able to provide to the people. A democratically elected government has to listen to its people’s needs and tackle the challenges. And if you have the resources to provide that energy, the best thing to do is to invest in the resources to make energy affordable and accessible to the people.”