Timipre Sylva, Minister of State for Petroleum Resources, Chief Timipre Sylva,has emphasized the need for African countries to shift attention to cleaner energy use.
He also said with significantly untapped fossil fuel reserves, which could provide much-needed foreign direct investment and export revenue,Africa has the ability to play a leading role in the transition to a net-zero energy future.
His advocacy was contained in a speech presented at the annual symposium and exhibition of the Society of Petroleum Engineers (SPE),made available to journalists by the media aide of the minister,Huratius Egua.
The continent’s enormous resources, he noted, could be harnessed using clean energy technologies.
He added:”With approximately 208.62 trillion cubic feet (TCF) of proven gas valued at over $803.9 trillion and potential upside of 600TCF of gas, he said Africa has the most extensive gas reserves, and in the top 10 globally.
“And in line with Federal Government declaration of years 2021 – 2030 as the ‘Decade of Gas’, we are taking steps to expand and develop the nation’s huge gas resources through enhanced gas exploration, development and utilisation schemes which will lead to gas reserves growth, increased gas production, maturation of the domestic and export gas market, as well as gas flare elimination,” he said.
Describing the Petroleum Industry Act (PIA) as a game changer, Sylva said the legislation would help support the continent to alleviate energy poverty.
The PIA, he said, has generous incentives to enable development, distribution, penetration, and utilisation of gas, even as it incentivizes entry into the midstream, especially for pipelines, with an additional 5-year tax holiday for investment in gas pipelines.
He added:“The PIA is a supply-side enabler, capable of provoking and triggering commercial interests and investments in gas utilization as well as treating gas as a stand-alone commodity.As a nation, we are following a transition pathway that combines technology, investment, business strategies, and government policy that will enable Nigeria to transition from its current energy system to a low-carbon energy system with natural gas playing a pivotal role over the next generation, roughly between now and 2060.
“Natural gas is a key resource for a
just energy transition and has all the credentials to support Nigeria and
indeed Africa meet up with her commitment with the UN 17 Sustainable Development Goals (SDGs).As a major source of wealth and energy in Africa, the development of oil and gas resources proves critical for our economic growth and revenue expansion,” he added.
He maintained that there must be multiple pathways to the energy transition, to ensure that no country was left behind in the process of achieving net-zero by 2060.
“As a continent, we need to be
intentional and recognize the need to develop hydrocarbon resources in
environmentally and socially responsible ways.And as alluded to by the African
Union, we need to be realistic in choosing the energy transition pathways which addresses our unique requirements and circumstances.
“As well as enhancing policy, legislation and implementation approaches across national, regional, and continental level, to enable a favorable environment for development.We need to develop bankable projects to scale up access to funding and investment. And adopt a mix of energy solutions to address the needs of each country including solutions to high tariffs and accessibility to sustainable energy options.
“We need to promote energy efficiency which is necessary for energy transition and focus on building energy infrastructure and strengthening transmission corridors,” Sylva said.
