. Amid energy crisis, country is flaring 2.5 billion cubic feet of gas every day
. $20 billion per year needed to fill infrastructure gap
Gas demand is rapidly increasing in Nigeria, with an estimated annual growth rate of 16.6%.
However, the country faces major challenges, with projections indicating a potential deficit of 3.1 billion cubic feet per day (bcf/day) by 2030.
This looming deficit could seriously impact Nigeria’s energy security and hinder economic growth, especially in key industries dependent on gas supplies.
Chief Executive of the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, presents at the Annual Strategic International Conference 2024 of the Nigeria Association of Energy Correspondents (NAEC) on the theme “Gas as Energy Transition Fuel: Navigating” did. Nigeria’s trilemma of finance, energy security and international politics.
Mr Komolafe, who was represented by Paul Osu, Chairman of the Lagos Regional Office, said Nigeria could face an expected compound annual growth rate of 16.6% in gas demand between 2020 and 2030. pointed out. He said the “base case supply and demand” scenario creates an impending gas supply crisis with a potential shortfall of 3.1 bcf/d by 2030.
However, he said major projects such as NLNG Train 7 and Train 8, the Nigeria/Morocco pipeline and Ajaokuta-Kaduna-Kano (AKK) natural gas will increase natural gas production from 8.0 bcfd in 2020 to 12.2 bcfd in 2030. He emphasized that it is predicted to increase. such as pipeline projects in a “bulk supply” scenario.
Komorav said gas demand growth is currently outpacing supply, but this is mainly due to domestic demand growth enabled by improved domestic supply obligations.
He stressed that this does not fit the “high demand” scenario, which is predicted to be 22.2 bcfd in 2030, and the demand landscape will change rapidly in just 10 years, especially if the challenges in the power sector are resolved. He pointed out that there is a possibility.
“The objective is to demonstrate the opportunities for gas development in Nigeria’s upstream sector and the need to complement hydrocarbon development with renewable energy.As the upstream industry regulator, NUPRC is committed to supporting the Petroleum Industry Act 2021 (PIA ) and is at the forefront of driving the interventions needed to realize the Gas Decade by enabling investment in cleaner hydrocarbon development through gas development. Programs such as the Nigeria Gas Flare Commercialization Program (NGFCP), which aims to eliminate flaring and monetize gas, in order to promote gas flaring and eliminate waste, while also respecting the urgency of reducing carbon emissions. “We are promoting this,” he said.
Mr Komorav stressed that NUPRC is in a position to create a favorable operating environment and urged investors to take advantage of the sustainability obligations and generous financial incentives in the PIA (2021).
He said the importance of the NGCFP is that it will increase the domestic availability of gas for liquefied petroleum gas (LPG), feedstock for power plants, fertilizer plants, and petrochemical products, each of which will serve as a gateway for aspiring investors. he pointed out.
“The global imperative for energy transition is clear and justified and the need for Nigeria’s energy security, economic development and prosperity cannot be overemphasized. The challenge for developing countries is that they need to align evolving energy dynamics not only with geography, history and politics, but also with the need for energy justice, equity, inclusion and sustainability. It is.
“With new developments in the global energy sector, Nigeria, a country long dependent on oil and gas development as a pillar of its economy, is poised to secure a blossoming energy future while meeting global climate goals. strategy needs to be reconsidered.
“The future we envision for the oil industry is based on the key pillars of Nigeria’s energy transition plan: shared prosperity, energy access, affordability, sustainability, security and energy independence. For the sake of energy sovereignty, it must ensure the utilization of the natural hydrocarbon resources that Nigeria is endowed with,” he said.
Mr. Farouk Ahmed, Chief Executive of the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), represented by Mr. George Ene Ita, Director of Public Relations, said that despite the huge gas shortage, the country still He said about 2.5 billion cubic meters of gas was flaring up. He noted that energy security is critical to Nigeria’s economic growth.
He stressed that the wasted resources could generate enough electricity to meet the country’s energy and electricity needs.
Mr. Ahmed criticized the fact that the country has fewer than 3,000 LPG refilling plants and fewer than 50 CNG compression stations in a country of 200 million people.
Chairman of the conference, Mr. Gabriel Ogbesey, Group Managing Director, Rainoil Limited, said the country is blessed with rich natural gas reserves but is at the crossroads of opportunities and challenges. Ta.
He added that the decisions taken today (yesterday) regarding the role of gas in the country’s energy landscape will shape the country’s economic and environmental future.
He cited a NEITI report that showed Nigeria needs about $20 billion a year to fill gas infrastructure gaps, from pipelines to processing plants.
He said the recent removal of gasoline subsidies increases the urgency of expanding gas alternatives, providing clean and affordable energy solutions to the public, ensuring energy security and building resilient energy systems. That’s what it means.
He pointed out that the government aims to increase electricity production from gas-fired power plants, and to achieve this it will need to invest heavily in gas infrastructure, while tackling issues such as pipeline breaches. He said there is.
