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‘Growing energy consumption necessitating transition from traditional supply’

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With the consumption rate of energy rising faster than the population growth rate, stakeholders in the energy sector have advocated renewed energy mix and transition from traditional energy supply to a more sustainable approach.

According to the operators, 50 per cent of energy supply in Nigeria and other African countries is based in coal and oil, both of which are expensive and unclean.

They projected that energy mix in the next few years will be driven by more of gas and renewable energy.

Speaking on the sidelines of the Energy Sustainability Conference organised by the Energy Institute, Nigeria, in Lagos, recently, the Managing Director of Nigeria LNG Limited (NLNG), Tony Attah added that while Nigeria has great potential and reserve in terms of natural gas, local utilisation of the commodity remains very low.

Attah, who was represented by the Corporate Strategy and Planning Manager, LNG, Dr. Yakie Ogon, said for Nigeria to exhaust the 200 tcf of gas in the next seven years, the world would have moved on to renewables.

According to him, many African countries are switching to gas, but about 24 power plants in the country are not working optimally due to lack of gas.

“They are gas powered plants, but they are not up and running and there are myriads of reasons why this happens. If you note all the contractual problems we have, because for me, I see more of contractual problems when you sell gas and you are not sure of payment by the buyers.

“You are not sure of contractual fidelity in terms of sanctity of contract and they are not sure when that contract fails, you can go through the legal means and get that payment made and all these discourages investment and that is why the export angle seems to be thriving.

The export angle is able to pay for gas supplied by the upstream companies. We believe gas is the future and gas has to partner with renewables and as a country we must make conscious efforts to achieve this”, he added.

The Chief Executive Officer of Energy Institute, Louise Kingham said there was need for transformational approach in energy consumption in the country, hence the need for sustainable energy approach.

The Program Manager, Nigeria Gas Flare Commercialisation Program (NGFCP), Justice Derefaka said Nigeria will be the third largest economy by 2050 hence, the need to make gas available for the growing economy.

He said there are over 178 flare locations across the Niger Delta, with about 324 bcf of gas being flared, adding that Nigeria used to be number two in the world in terms of gas flaring and presently 7th in the world.

The Managing Director, Shell Nigeria Gas, Ed Ubong, said it is not all gloom for the Nigerian gas market, even as he expressed optimism in the country’s ability to generate enough gas for industrial and domestic use.

According to him, many manufacturers are now running their industrial base on gas.


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