…Gas is poised to play an increasingly pivotal role as it offers pathway to balance energy needs with long-term climate goals.
-Felix Douglas
“I would like to express my profound appreciation to the Nigerian Association of Energy Correspondents for inviting me to deliver this address on a topic that could not be more timely or critical: “Gas as Energy Transition Fuel: Navigating Nigeria’s Trilemma of Finance, Energy Security, and International Politics.”
These were the words of Ekperikpe Ekpo, Minister of State, Petroleum Resources (Gas) at the 2024 Association of Energy Correspondents of Nigeria (NAEC) Annual Conference in Lagos.
The Minister recognised the vital role that the media play in shaping public discourse, enhancing transparency, and promoting accountability within the energy sector. “As the Fourth Estate of the realm, you provide the vital link between government policy, industry developments, and the broader public. Through your dedication, you ensure that information is communicated clearly, responsibly, and truthfully, which is key in building trust and fostering progress in the energy space.”
According to the Minister, the role in transmitting crucial energy information to the media and public, contributes greatly to ensuring that Nigerians remain informed and engaged in ongoing national dialogue on energy. “Your work allows stakeholders to make informed decisions, and your balanced reporting creates an enabling environment for discourse on the challenges and opportunities in the energy transition. I commend you for your commitment to the task and encourage your continued efforts as we work towards a prosperous energy future for Nigeria.”
“As we gather to discuss the future of gas, it is essential to highlight how natural gas serves as a bridge to our sustainable energy future. In Nigeria, gas is poised to play an increasingly pivotal role, as it offers a pathway to balance our immediate energy needs with our long-term climate goals.”
Ekpo said Nigeria has abundant natural gas, which is more environmentally friendly than other fossil fuels, and offers a crucial opportunity to serve both domestic and international markets. It is through gas that the country can address its energy access challenges, power its industries, and improve the standard of living for the people. But it also provides with the flexibility to meet global commitments to reduce carbon emissions, making it a vital component in its transition to cleaner energy.
The Minister said navigating the energy transition in Nigeria requires the country to carefully balance three key factors: Finance, Energy Security, and International Politics.
Finance
Financial challenges are involved in driving energy development in Nigeria, particularly in the gas sector. However, the government is making significant strides in unlocking investments. One major milestone is the forthcoming Gas Sales Purchase Agreement (GSPA) for the Brass Methanol Project, which will inject $3 billion into Nigeria’s gas industry. This investment will not only enhance Nigeria’s position in the global gas market but also stimulate the local economy by creating jobs and expanding our industrial base.
The Minister said under his leadership, as contained in the Petroleum Industry Act (PIA) 2021, the ministry constituted Midstream and Downstream Gas Infrastructure Fund (MDGIF) to address critical financing gaps in infrastructure development. This will go a long way in ensuring that gas resources are efficiently harnessed and delivered to the market.
Energy Security
Ekpo was of the view that ensuring a secured and stable energy supply is essential for Nigeria’s economic growth. In the gas sector, the government has taken important steps to guarantee reliable energy delivery for power generation and industrial use.
“Just two weeks ago, we concluded the US-Nigeria Strategic Energy Dialogue where we arrived at key bilateral cooperation which include:
- The US Department of State, through its Energy and Mineral Governance Program committed to renewed technical assistance to further support the Nigerian Government and NNPC in reducing methane emissions from the oil and gas sector.
- The US Agency for International Development (USAID), through Power Africa, commits an additional $75-$85 million technical assistance to Nigeria.
- The US Department of Energy’s Net Zero World Program commits more than $1.3 million for clean energy technical support to Nigerian Partners.”
International Politics
Ekpo made it known that geopolitical landscape plays a critical role in shaping energy policies and trade routes. “We are advancing several initiatives to position Nigeria as a major global player in the energy market. The Nigeria-Morocco Gas Pipeline Project, which will traverse West African countries and deliver gas to Europe, is a major step forward. This project, once completed, will diversify Nigeria’s export routes and enhance regional energy security, ensuring that our gas serves as a catalyst for economic cooperation across Africa and beyond.”
The Minister highlighted some key achievements in the gas sector, which demonstrate government’s firm commitment to advancing Nigeria’s energy landscape:
Environmental Leadership
Ekpo said under his administration, government has made significant progress in reducing gas flaring and methane emissions. The NNPC Ltd/TotalEnergies Joint Venture has successfully achieved zero routine gas flaring across all its Nigerian assets, a major milestone in commitment to achieving net-zero flare gas emissions. Additionally, the government has provided leadership in promoting flare gas elimination and methane abatement initiatives, ensuring Nigeria’s commitment to environmental sustainability.
Gas Infrastructure Expansion
The ministry has commissioned so many projects in the country such as the AHL Gas Processing Plant, the ANOH Gas Processing Plant, and the ANOH-OB3 Gas Pipeline. These projects will significantly expand Nigeria gas processing and transportation capacity, fueling both domestic and industrial growth.
Promotion of CNG and LPG
In support of energy transition, Ekpo revealed that the government has deployed CNG Stations across the country through the NNPC. “We have launched the Ride Share CNG Conversion Incentive Programme, alongside the My CNG App, which offers a 50% discount for rideshare drivers. This initiative promotes compressed natural gas (CNG) as a cleaner, more affordable fuel option for transportation while reducing the financial burden on drivers and promoting a shift to cleaner fuels.”
The government has made remarkable progress in commissioning new gas processing facilities across the country, including the 3.1 million metric tonnes per day CNG plant in Ogun State, the 5.2 MMscfd CNG/autogas facility in Lagos, and the 300 MMscf/d Kwale Gas Gathering Hub in Delta State. These projects not only boost gas supply but also create jobs, stimulate local economies, and increase access to clean energy.
Speaking further at the NAEC conference, Ekpo said he cannot overstate the importance of the role of energy correspondents. “You serve as the vital bridge between the actions we take in government and the understanding of the Nigerian people.”
“Your reporting ensures that our achievements, challenges, and the broader implications of energy policy are communicated clearly and effectively. As we continue to navigate the complexities of energy transition, your work in informing the public, creating awareness, and fostering dialogue will be essential in shaping the future of Nigeria’s energy sector.”
The Minister told energy correspondents that shared objective remains clear which is to harness potential of natural gas to drive sustainable economic growth, secure energy future, and ensure Nigeria’s leadership on the global energy stage.
“Together, we must continue to work collaboratively, embracing the opportunities that lie ahead while addressing the challenges that confront us.”
He commended NAEC for its dedication and commitment to raising awareness about critical issues facing energy sector. “I am confident that through our collective efforts, Nigeria’s gas sector will continue to thrive and provide a lasting legacy for future generations.”
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