Digitalisation in the Nigerian Energy Sector: NLNG’s Perspective
Since the dawn of the century, digital technology has continued to make enroute into key sectors of the global economy as efficiency and effectiveness drive growths.
The energy sector which is the mainstay of the Nigeria’s economy, particularly the oil and gas industry, is not left out in this global trend. Energy experts are of the view that for players in the industry to succeed, they must acknowledge that this new era of automation and artificial intelligence is focused on application of cutting edge technologies, such as the use of robotic driven systems to optimize operations, deployment of cognitive computing in upstream operations, super specialized sensors for rigs and monitoring, and maximization of reservoir years.
In this regard, the Nigeria LNG Limited (NLNG) has emphasized the importance of integrating digital technologies to improve operational efficiency, reduce emissions, increase revenue and remain competitive.
Nigeria is aiming to achieve net-zero carbon emissions by 2060. The NLNG believes that as players deal with rapid global changes and energy transition, digitization would be central for the industry.
Speaking at the 7th Nigeria International Energy Summit (NIES) 2024, NLNG’s Deputy Managing Director, Olakunle Osobu, noted the significant role of digital technologies and data analytics in enhancing efficiency, productivity, safety standards, and environmental sustainability across the energy value chain. This is according to a statement.
Diversified energy portfolio
While industry players acknowledge the global shift towards renewable energy, challenges such as intermittency, predictability, and reliability exist due to geological constraints.
So, the challenge now is: how does the world meet its energy needs on one hand and carbon emissions reduction target on the other hand?
At an industry event in November last year, the Group CEO of the Nigerian National Petroleum Company (NNPC) Limited, Mele Kyari, adovcated for diversified energy portfolio towards attaining energy transition.
Represented by NNPC Limited’s Executive Vice President, Upstream, Oritsemeyiwa Eyesan, Kyari called on stakeholders within the Nigerian oil and gas industry to adapt to changing global energy landscape.
“He further highlighted the absence of a perfect energy source and advocated for a diversified energy portfolio that leverages innovation and technology to harness the strengths of different energy sources,” a statement said.
Just like NLNG, experts believe that digitization can help Nigeria reduce carbon emissions while ensuring available and affordable energy for economic growth and development.
“Now the rising need for transition towards more sustainable energy resources, energy poverty and global geopolitics requires strategic reappraisal of the energy industry in Nigeria.
The nation has an energy transition plan to get us to net-zero greenhouse gas emissions by 2060. However, there are many factors that need to be considered and appropriately addressed in the nation’s shift to a sustainable energy future. The reality of the climate change is basic in Nigeria, with desertification.
You’re all aware of what’s happening in the north and also flooding in the south and some parts of the north. This change calls for a crucial need to significantly reduce carbon emissions while ensuring available and affordable electricity,” says former President of NAPE, Dr. James Edet.
He noted that with the Petroleum Industry Act (PIA) and the Climate Change Act now signed into law, the Nigerian oil and gas industry has a role to play towards the successful implementation of these regulations and ambitious plans.
“Globally, significant consumers of the hydrocarbon industry are undergoing a massive technological shift towards low or zero carbon energy usage like electric vehicles and the likes. The ongoing war, global politics, in- country security challenges and asset divestment have exacerbated the impact of energy supply shortage and altered the energy landscape,” Edet said.
“Furthermore, there are other contending and increasingly relevant issues such as energy security; the dynamics of gas development, commercialization and monetization; development of Nigeria’s under explored gas rich basins; and how Nigeria will adapt her politics or policies and diversify her energy portfolio in the energy transition era, so as to achieve sustainable growth for her economy.”
NLNG’s pioneering role
The NLNG is a pioneer in leveraging digital technology within the LNG sector.
Osobu, who was on a panel discussion tagged “Digital Transformation and Sustainable Energy Solutions in Upstream and Downstream Sectors”, highlighted the significance of nurturing young talent and embracing digital tools.
Underscoring digital tools criticality in streamlining processes, fostering innovation, and addressing sustainability challenges within the evolving energy landscape, Osobu stated that leveraging digital solutions enables the industry to unlock unprecedented career opportunities while tackling resilience and sustainability imperatives.
He listed some of the innovative solutions of the NLNG. These include: the Smart Mobile Worker programme, which utilises smart helmets and tablets for remote support, enabling swift repairs, reducing mobilisation costs, and enhancing safety protocols.
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According to Osobu, there is also the NLNG’s digital twin technology, which “replicates plant operations using real-time data for remote planning and improved safety measures without necessitating physical site visits.”
These initiatives, he noted, gives NLNG competitive advantage by enhancing operational efficiency, environmental stewardship, workforce safety, and financial performance.
