President Muhammadu Buhari,says Nigeria is prepared to face the challenge of rising global demand for cleaner energy sources.
He spoke at the opening ceremony of the ongoing 2022 Nigeria Energy Summit in Abuja, urged the summit to develop smart homegrown goals for the country’s energy transition.
He was represented by Chief Timiprye Sylva, the Minister of State for Petroleum Resources.
He said: “We will ensure for the optimal exploitation and utilization of the country’s vast natural gas resources given the country’s potential of about 600 TCF natural gas reserves as animals potential to diversify and grow Nigeria’s economy. We are fully aware that energy transition raises the bar in terms of environmental, social and governance demands. We are already building blocks and bricks that will ensure seamless energy transition as the country joins in the race for netzero carbon emission ambition.
“That is why this administration declared natural gas as the transition fuel for Nigeria. Without that, natural gas, ticks all the boxes were prepared to face the challenge. rising global demand for cleaner energy sources. I urged the summit to develop smart homegrown goals for the country’s energy transition. We are waiting to deliberate on the strategy paper from this summit and incorporate critical parts of it into government policies when necessary.
Speaking in his capacity as Minister of State for Petroleum Resources, Sylva noted that for countries such as Nigeria, that is rich in natural resources but still energy poor, the transition must not come at the expense of affordable and reliable energy for people, cities, and industry.
“On the contrary, it must be inclusive, equitable, and just—which means preserving the right to sustainable development and poverty eradication as enshrined in global treaties such as the Paris accord. It is evident that what makes the most sense from the point of view of “balancing energy security with environmental sustainability is the use of gas as a transition fuel.”
“At the heart of this administration is the vision to drive infrastructure and industrial development of the country in order to prosper her citizens and make life more meaningful to all. Natural gas ticks all the boxes as the vehicle to help government achieve the aspiration and that is why we embraced the resource to help turn around the economy by declaring year 2021-2030 as Nigeria’s decade of gas.
“To demonstrate that we are indeed committed to our vision, the Decade of Gas has now become an integral part of the Federal Government Oil and Gas Road map.
“We have embarked on a critical pathway to ensuring that the over 200 Trillion Standard Cubic Feet (TSCF) proven reserves of Natural gas in Nigeria is marshalled to engender domestic economic growth and development beyond 2030. Thus, we are driving to make natural gas our dominant primary energy source for use in the medium to Long term. Thankfully, our reliable partner, the Nigeria LNG Limited is not backing out. They are fully backing this initiative all the way.
“In this regard, the Ministry has launched the National Gas Expansion Programme (NGEP) to expand Nigeria’s Domestic utilization as part of the National Gas Policy; the National Gas Flare Commercialization Programme; as well as specific provisions in the new Petroleum Industry Act (PIA) 2021 that elevates LPG as the fuel of choice compared to other competing fuels.
“With this programme, we have established a 20 million Cylinder Injection Scheme; 5-10 million of these are to be introduced in pilot states this year. We have also established an LPG Energy Fund in the order of $50 million, in its first phase, in partnership with AFREXIMBANK,”
“LPG is set to be part of the destination as it is being used as a precursor for green hydrogen with zero emission. An eventual move to bio-LPG will allow countries like Nigeria to keep existing infrastructure in place, capitalize on already existing supply and distribution chains and reach net-zero at far lower cost. This, no doubt will help overcome the concern of stranded assets and Consumers will not have to re-invest in expensive electrical solutions if their gas appliances can be re- purposed for zero carbon LPG.
“As we have done in past editions of this summit, I expect free and frank exchanges in all our discussions and I am also prepared to present this summit outcome at the Federal Executive Council meetings. Nigeria and the entire Continent of Africa counts on you at this moment to ensure we move our oil and gas industry forward” he stated
