Gas Industry must tread the Right Path for Nigeria’s Economic Transformation- Ekpo

In his Gas Industry Address, Minister of State for Petroleum Resources (Gas), Hon. Ekperikpe Ekpo, speaking at the opening ceremony of the 7th edition of Nigeria International Energy Summit (N.I.E.S 2024), called it a pivotal event that brings together key stakeholders in the energy sector to discuss challenges and opportunities that lie ahead.

“As we gather here, we are faced with a critical juncture in our journey towards a sustainable energy future for our dear nation.”

Ekpo was of the opinion that the theme of the summit, ‘Navigating the new energy world order: Security, Transition, and Finance,’ underscores the challenges and opportunities that define the times. The theme resonates deeply with the path that the gas industry must tread to ensure Nigeria’s economic transformation.

The Minister stressed further that energy security extends beyond geopolitical stability to include energy infrastructure’s resilience, diversity, and reliability. The gas industry, with abundant proven gas reserves of more than 208TCF and further exploration potential, is crucial for enhancing energy security. In the light of the above, Nigeria has no business with energy poverty.

“In our transition to a sustainable energy future, Nigeria has chosen gas as our transition fuel, facilitating the shift from more conventional to new and renewable energy sources. With its lower carbon footprint and versatility, natural gas aligns with global climate objectives while providing a reliable solution for our energy needs.”

He said Nigeria, with significant gas reserves, should leverage this advantage to become a key player in the global energy transition and a regional powerhouse for gas processing and industrialization.

Finance is essential for transformative endeavours, and the gas sector is no exception. Attracting domestic and foreign investments is important to unlock the full potential of gas resources. Collaboration with international partners, financial institutions, and the private sector is pivotal for securing funding for gas infrastructure development.

According to the Gas Minister, Nigeria is currently facing challenges as “We continue our journey of National development; however, these challenges also present us with a unique opportunity to seize the moment and define our future, without a doubt, the gas industry plays a crucial role in shaping the country’s energy future.”

Ekpo said the country is rich in natural gas reserves. It is now essential to strategically utilize these resources to drive economic development, job creation, poverty eradication and environmental sustainability.

“As we are all aware, overdependence on oil revenue poses significant economic risks for our nation. Despite efforts to diversify the economy away from oil dependence, we have faced numerous challenges. However, innovation and strategic vision become imperative in times of challenge.”

He advocated for a shift towards vast potential that lies in Nigeria’s gas sector. The shift towards gas is not merely an option but a necessity for economic resilience. The gas industry presents a unique opportunity to diversify revenue streams, reduce dependence on oil, and create a more robust and sustainable economic foundation.

Ekpo maintained that Nigeria’s journey to revitalize the country’s economy through natural gas should stand on four key pillars.

Firstly, Nigeria is accelerating the deployment of gas-fired power plants and working with its counterparts in the Ministry of Power to ensure the reliability of gas supply to enhance the optimal availability of electricity nationwide. This goes hand-in-hand with encouraging private sector participation in the power sector through attractive investment frameworks and incentives.

Secondly, the country is promoting the use of natural gas as feedstock for industries, reducing operational costs and enhancing competitiveness. “We are doing this by facilitating the establishment of gas-based industries to create more employment opportunities and boost economic growth.”

Thirdly, Nigeria will continue development of necessary infrastructure to ensure widespread access to clean and affordable natural gas for domestic consumers and encourage adoption of Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) for transportation and household use, respectively.

The fourth part is that Nigeria will continue to strengthen partnerships with neighbouring countries to enhance regional gas trade and cooperation through the West African Gas Pipeline (WAGP) and other novel initiatives, including Nigeria-Morocco Gas Pipeline (NMGP) and Tran-Saharan Gas Pipeline (TSGP) among others. “We also want to explore more international markets for our liquefied natural gas (LNG) exports, thereby positioning Nigeria as a major player in the global gas market.”

The Minister added that there some major gas projects and initiatives. Significant progress has been made in the realization of the ‘Decade of Gas’ vision. The official secretariat is now operational and fully functional.

“On September 12, 2023, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) announced the successful bidders for the Nigerian Gas Flare Commercialization Program. Out of 300 interested entities, 42 were chosen, receiving 40 flare sites for independent development, while 4 entities got 9 sites each for cluster development. The allocated entities are expected to commence full operations on their sites this year.”

Another milestone in the country’s journey towards a gas-focused economy is the Ajaokuta-Kaduna-Kano (AKK) pipeline. Significant progress has been made in constructing this critical infrastructure project, and “We are on track to ensure its completion and commissioning as scheduled.”

The Obiafu/Obrikom/Oben (OB3) is a vital piece of gas infrastructure for the supply of feedstock to the AKK pipeline. This pipeline is among Nigeria and Africa’s biggest gas transmission systems. Per the Contractor’s estimates, “I am pleased to announce that the OB3 pipeline will be completed by March 2024, and the 42″ 127 km pipeline will supply 2BCF daily.”

“Upon completion, this pipeline will provide the AKK pipeline with gas from the three fields of Obiafu, Obrikom, and Oben. I want to use this opportunity to appreciate the resilience of the NNPCL Group for their steadfastness and proactive approach to ensuring the timely completion of the OB3 pipeline project.”

President Bola Tinubu is fully committed to creating an environment that enables the growth of the gas sector. The administration actively implements policies and regulatory frameworks encouraging investment, promoting innovation, and ensuring sustainability. The private sector is welcome onboard. “Together, we can transform our abundant natural gas resources into a driving force for economic development and ensure that Nigeria emerges as a key player in the global energy landscape.”

The gas sector is not merely a component but a cornerstone in navigating the challenges and opportunities presented by the new energy world order. “Let us leverage our rich gas resources to enhance energy security, facilitate a seamless transition, and attract the necessary finance to propel Nigeria into a sustainable and prosperous energy future.”