NNPC advocates for strategic balance in managing Energy transition
The Chief Upstream Investment Officer, NUIMS, NNPC Ltd., Bala Wunti has emphasised the need for a balance in managing energy transition. He made the disclosure at the 46th edition of the Nigeria Annual International Conference and Exhibition (NAICE) held recently at the Eko Hotel, Lagos.
Held under the theme for, Balancing Energy Accessibility, Affordability, and Sustainability: Strategic Options for Africa, Wunti, a key speaker during the Panel Session, discussed the transition towards energy sustainability and strategies for developing countries.
Represented by Andrew Grant, the Head of PSC Investment Management, NUIMS, Wunti drew attention to two significant aspects of energy management: energy transition and energy security. While energy transition refers to the global shift from fossil fuels to renewable sources, energy security calls for increased investment in all forms of energy to guarantee uninterrupted availability.
He highlighted that the ongoing conflict in Europe, recent policy changes, and post-COVID recovery are spurring investment in the energy sector, adding, “Yet, while investments in energy security are increasing, the push for energy transition continues unabated.”
While outlining anticipated rise in global energy demand from 2021 to 2050, he observed, “Despite the rise in renewable energy, oil and gas will still play a pivotal role, comprising more than 50 per cent of the total energy mix. This insight underscores the importance of continued investment in oil and gas production even during the energy transition.”
To meet escalating global energy demand, Wunti advocated for substantial investment and financial backing, especially in cleaner energy sources.
“This call is crucial as these sources often offer lower profit margins compared to traditional fossil fuel sources. Therefore, strategic actions towards financing the energy transition are imperative.”
He noted that approximately $1.9 trillion would be required over the next few years to meet clean energy targets, and stressed the need to ramp up gas usage for electricity, increase the use of electricity-fueled cars, and promote the use of Liquefied Petroleum Gas (LPG) for cooking in Nigeria.
Addressing the Nigerian situation, the speaker outlined the country’s energy opportunities and challenges, adding, “While Nigeria boasts abundant gas resources and renewable energy sources, it also grapples with rising energy demand, poor infrastructure, and a lack of Carbon Capture and Storage (CCS) technologies.”
He shared NNPC’s strategic initiatives to increase gas production, which are expected to double current production levels in the coming years.
“This expansion requires significant investments, reflecting the government’s commitment to boosting gas production.”