Stakeholders seek gas, infrastructure investment to drive $1.9tr energy transition 

Industry leaders have called for massive investment in gas and energy infrastructure as Nigeria seeks over $1.9 trillion to transition toward cleaner energy.

The stakeholders, who spoke at the ongoing Gastech Conference in the U.S., noted that without urgent and massive investments, countries like Nigeria may not achieve efficient and equitable energy transition.

The Managing Director and Chief Executive Officer of Nigeria LNG, Dr Philip Mshelbila, said for countries like Nigeria and other developing economies, global energy policymakers must create energy equity and inclusion to ensure that the average African woman’s daily energy needs are met.

He cautioned that there were consequences for energy exclusion and that the concept of energy inclusion was key to meeting climate energy goals. He expressed that the dearth of quality infrastructure like insufficient pipelines, storage, regasification facilities, high costs of importing LNG, and energy poverty like limited access to affordable energy are key issues that must be addressed.

He stressed that the shift from traditional fossil fuels to cleaner energy sources will require a concerted effort, backed by significant financial commitments to modernise infrastructure and expand access to sustainable energy.

Dr Mshelbila affirmed that by addressing these challenges and leveraging on solutions, emerging economies can widen access to natural gas and LNG, and support a lower-carbon energy transition and energy inclusion. He noted that the Nigerian government is doing all it can to meet the energy needs of its growing population, using natural gas as its transition fuel.

“Nigeria’s population is estimated to be around 200 million and by 2050, it is estimated to grow to about 250 million, and most of them are young people, who will need one form of energy, in one way or the other.  So, it is expedient to have various energy mixes to cater to this growing population. In 2020, the government launched the Decade of Gas and NLNG is solidly behind it and playing a huge role in that initiative.

“As of today, NLNG supplies almost 40 per cent of Nigeria’s LPG demand in-country, delivering over 400,000 tonnes. Our company focuses on the domestic market, which solidifies its reputation as a top-tier global player. Also, by channeling the LPG, we are invariably displacing Charcoal and wood burning, which release pollutants that cause about 1.6 million premature deaths annually,” he said.

Dr Mshelbila added that Nigeria and other developing nations need the energy to move forward in their industrialisation agendas and natural gas will play a vital role in it, hence, called on producing nations to see how natural gas can be maximised in developing their nations.

Meanwhile, Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, during his speech at the conference on the theme: “From mitigation to adaptation: Navigating volatile geopolitics in a fragmenting global order,” said Nigeria’s position for just, equitable energy transition will guarantee its energy security and adequately ensure efficient energy sector transformation that will benefit all stakeholders and address social, economic, and environmental concerns of the nation.

He assured global leaders that Nigeria is open for business as President Bola Ahmed Tinubu has executed policy directives to improve the investment climate that will position Nigeria as the preferred investment destination for the oil & gas sector in Africa.

The Minister mentioned that the policy directive includes the Introduction of fiscal incentives for non-associated gas, midstream and deepwater developments, ⁠streamlining of the contracting process to compress the contracting cycle to six months and the application of the local content requirements without hindering investments or the cost competitiveness.

“Nigeria is open for business and we have a conducive environment ready to welcome investments and partnerships in the gas sector, our President has implemented Policy directives that will guarantee investment in the sector. We are here in Gastech to tell the world that Nigeria is open for business in gas development. As you know Nigeria has significant natural gas reserves, playing a crucial role in the country’s economy and energy sector. Our potential gas reserve is estimated to be 600 tcf, with more discoveries expected.

“It is important to tell the world that Nigeria’s transition fuel is gas, so we are doing everything possible to ramp up production in the gas sector. A lot of projects have been identified to meet the demands of gas in the country. Also, it is important for the world to know the presidential initiatives on CNG and LPG penetration,” he said.