Business - Business & Economy - News - Oil & Gas - November 16, 2021

Energy transition: Petroleum engineers pledge to back Nigerian govt. gas-based agenda, NAPE President

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The plan by the Federal Government to utilize natural gas as Nigeria’s energy transition fuel will enjoy the expertise and backing of the Nigerian Association of Petroleum Explorationists (NAPE), the President of the group, Patricia Ochogbu, has said

Ochogbu who spoke during the association’s 2021 Pre-Conference Workshop on Monday in Lagos on the theme:” The Next Decade of Oil and Gas Business in Nigeria: Impact of Energy Transition.”

Noting that there was a global push for energy transition from fossil fuel to cleaner sources of energy to mitigate the effects of climate change, the NAPE President said the Nigerian government’s declaration of 2021 and 2030 as ‘The Decade of Gas” was commendable.

This initiative, she said, was well designed to transform Nigeria not only into one of the world’s leading producers of natural gas, but also a major consumer of the commodity.

” In furtherance to that declaration, the federal government rejected the concept of a single pathway to energy transition and net zero carbon. The government is opting to continue to explore and invest in the development of hydrocarbon resources, while pushing for the use of gas as the transition fuel,” she said.

Ochogbu said the government was adopting the concept of a ‘Just’ energy transition, which takes into account the specific circumstances of each nation in developing their energy transition pathway.

She said the objective of the workshop was to identify the challenges the Nigerian oil and gas industry was facing in the dispensation of the new normal agenda with regards to the future of natural gas in the energy mix and in the Nigerian energy transition agenda in the coming decade.

At the end of the workshop, she said a communique would be issued as part of the group’s expertise contribution to be presented to the government towards the actualization of its declaration of the decade of gas and its focus on driving a gas-based energy transition agenda.

Also, Managing Director, Newcross Petroleum Ltd., Victor Sodje, noted that the
next decade of oil and gas business was going to be very challenging for those who had not positioned themselves strategically.

The challenges, Sodje said, range from funding limitations by most international banks, geo-political challenges which impact fiscalised volumes and the anticipated limited non-African demand for Nigeria’s crude oil.

However, he said with over 50 percent of Nigeria’s national budget being funded from the proceeds of fossil fuel, the country would likely face significant challenges and deficits if it did not take the challenge as a holistic national call for service to improve the its revenue resource.

Sodje said the declaration by the government of the decade of gas was an opportunity to optimize the utilization of the nation’s gas derivatives and deepen its participation in the global market by developing its infrastructure and diversifying into petrochemical products.

He said this would increase the liquefied petroleum gas penetration in-country enhanced by the elimination of gas flaring in the country. (NAN)

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