NIGERIA POSITIONED TO BECOME A SUPERPOWER IN THE UNFOLDING ENERGY TRANSITION REGIME– NUPRC CCE, KOMOLAFE
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.Says demand for gas is expected to grow at a compound annual growth rate of 16.6%.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has affirmed that Nigeria is positioned to become a superpower in the unfolding energy transition regime given its population of over 200 million people, with a huge gas resources and other abundant energy sources to achieve the right energy mix for powering her sustainable energy future.
The commission also confirms that gas remains crucial as a transition fuel in addressing Nigeria’s energy challenges and that energy security is a cornerstone of national development.
The Commission Chief Executive, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engr. Gbenga Komolafe stated this while delivering special regulators address at the 2024 NAEC annual conference, hosted by the Association of Energy Correspondents of Nigeria (NAEC) with the theme“Gas as Energy Transition Fuel: Navigating Nigeria’s Trilemma of Finance, Energy Security and International Politics”.
Komolafe, who was represented by Mr Paul Osu, Director of Lagos Operations, NUPRC, called for enhanced collaboration to harness the country’s vast energy potential.
The Commission Chief reiterated energy security is the cornerstone of national development. “For Nigeria, this means ensuring that our growing population has access to affordable, reliable energy while maintaining a balanced energy mix that protects us from volatility and geo-politics in global markets.”
He maintained that the country’s significant advantages include a large population and abundant gas resources. He defined energy security as ensuring affordable, reliable energy access for all, while maintaining a balanced energy mix.
According to him , the conference provided a platform to discuss the Decade of Gas Initiative, aims to position natural gas as a driver of economic growth and environmental sustainability, aligning with global climate goals and Nigeria’s energy security needs.
Komolafe projected a 16.6 per cent compound annual growth rate in gas demand from 2020 to 2030 but warned of a potential 3.1 billion cubic feet per day (bcf/d) shortfall by 2030 if current trends continue.
He noted that natural gas production was expected to increase from 8.0 bcf/d in 2020 to 12.2 bcf/d by 2030, driven by projects like the Nigeria/Morocco pipeline and the Ajaokuta-Kaduna-Kano Natural Gas Pipeline.
The Petroleum Industry Act (PIA) and recent executive orders were highlighted as key drivers in improving sector efficiency and competitiveness.
Komolafe called for media support in promoting these developments, emphasising transparency and collaboration as essential for realising the nation’s energy transition goals.
He urged attendees to view the conference as a call to action for unlocking opportunities in Nigeria’s energy landscape, reinforcing the nation’s potential as a global energy transition leader.
He noted that the conference discussions were expected to shape Nigeria’s energy policies and strategies in the coming years
Komolafe appreciated NAEC for keeping the tempo in bringing to the fore topics that are cogent to annexing and developing Nigeria energy sources.
He said the post-Paris Agreement era has witnessed a growing recognition of the urgency to combat climate change. Consequently, more and more countries, and entities are establishing carbon neutrality targets, which in turn have resulted in a global shift towards a more sustainable and low-carbon energy landscape.
This has also brought about decline in oil and gas investment as investors and financiers face mounting pressure from various fronts. Moreso, at COP28 Summit held last year in Dubai, world leaders agreed to work together to triple the global renewable power capacity by 2030. Interestingly, at the same Summit, the global leaders revealed their intent to work collaboratively and expeditiously “…taking into consideration different starting points and national circumstances”, thereby paving the way for Nigeria to adopt transition pathways that recognize its economic landscape and national situations.
Engr. Komolafe added that the blueprint for various pathways to energy transition aligns perfectly with national stance on “just transition”. Whereas the global imperatives for energy transition is clear and justified, the need for Nigeria’s energy security, economic development and prosperity cannot be overemphasised.
The agenda for Nigeria, and other resource rich developing economies is that the evolving energy dynamics must be calibrated against geography, history, and politics as well as the need for energy justice, equity, inclusivity, and sustainability. The new dynamics in the global energy arena necessitate that Nigeria, a country long dependent on the exploitation of oil and gas as the mainstay of its economy, re-examine its strategy to secure a blossoming energy future while meeting the global climate goals.
“The future we envisage for the petroleum industry is one that should assure for the utilization of Nigeria’s endowed natural hydrocarbon resources for shared prosperity, energy accessibility, affordability, sustainability, security as well as energy independence and energy sovereignty which are the cardinal pillars of the Nigeria Energy Transition Plan. Government has therefore declared natural gas as our immediate transition fuel because it provides a cleaner alternative to oil and coal, emitting significantly fewer greenhouse gases while maintaining the reliability needed to power industries and homes.”
According to the NUPRC boss, unfolding event has equally shown that natural gas is Nigeria’s destination fuel, with a projection that gas will form a significant part of energy mix for Nigeria by year 2030 and beyond. In recognition of this, government has designed a programme that ensures that gas actually plays a role to lift the country from challenges that confront it in order to drive industrial development: 2021 to 2030 was declared as the Decade of Gas.
“At the heart of the Decade of Gas programme is the vision to drive infrastructure and industrial development of Nigeria in order to prosper our citizens and make life more meaningful for all. The work done so far has aggregated the gas demand and supply views, infrastructure requirements and the suitable pricing framework which will serve as the enabler for unlocking the investments required.”
“As we discuss and deliberate today on pathways to our collective energy future, it behoves on us to accept the proceedings of this NAEC Conference as a call for action and a charge for enhanced collaboration in unlocking the vast opportunities in Nigeria for energy security and shared prosperity.”
