Huge Infrastructural Investment Key To Efficient And Equitable Energy Transition In Developing Countries, Says NLNG MD, Dr. Philip Mshelbila

Huge Infrastructural Investment Key to Efficient and Equitable Energy Transition in Developing Countries, Says NLNG MD, Dr. Philip Mshelbila

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Huge Infrastructural Investment Key to Efficient and Equitable Energy Transition in Developing Countries, Says NLNG MD, Dr. Philip Mshelbila

In a powerful call for action, the Managing Director and CEO of Nigeria LNG (NLNG), Dr. Philip Mshelbila, has highlighted the critical need for massive infrastructural investments to drive an efficient and equitable energy transition in developing countries. Speaking at a global leadership panel on “Energy Inclusion: Widening Access to Natural Gas and LNG to Support the Transition to Lower-Carbon Energy Systems in Emerging Economies,” held at the George R. Brown Convention Center in Houston, Texas, Dr. Mshelbila emphasized that without substantial investment in energy infrastructure, the transition to cleaner, more sustainable energy sources would be hindered in nations like Nigeria.

During his address, Dr. Mshelbila shed light on the opportunities and challenges involved in expanding access to cleaner energy in high-growth markets, particularly in developing regions. He identified key infrastructural gaps such as insufficient pipelines, inadequate storage and regasification facilities, and the high costs of importing Liquefied Natural Gas (LNG) as significant barriers. These challenges, coupled with widespread energy poverty—defined as limited access to affordable and reliable energy—have created a critical need for targeted interventions to ensure a successful energy transition.

Dr. Mshelbila stressed that addressing these infrastructural deficiencies could unlock significant opportunities for emerging economies. By leveraging appropriate solutions, these nations could widen access to natural gas and LNG, supporting a transition to a lower-carbon energy system while simultaneously fostering energy inclusion.

Turning his attention to Nigeria, Dr. Mshelbila underlined the urgent need for global energy policymakers to prioritize energy equity and inclusion, ensuring that basic energy needs, particularly those of the average African woman, are met. “There are consequences for energy exclusion,” he warned, explaining that achieving energy inclusion is vital for meeting global climate and energy goals.

Discussing Nigeria’s growing population and its future energy needs, Dr. Mshelbila highlighted that the country’s population, currently estimated at 200 million, is projected to increase to approximately 250 million by 2050. The majority of this growing population will be young people, all of whom will require access to various forms of energy. “It is therefore imperative that Nigeria diversifies its energy mix to cater to the demands of this rapidly expanding population,” he said.

He further noted that the Nigerian government is making concerted efforts to meet these energy needs, using natural gas as a critical transition fuel. In 2020, the government launched the “Decade of Gas” initiative, and NLNG has been a strong supporter and active participant in this vision. Dr. Mshelbila proudly stated that NLNG currently supplies nearly 40 percent of Nigeria’s Liquefied Petroleum Gas (LPG) demand, delivering over 400,000 tonnes annually. This, he explained, helps reduce reliance on charcoal and wood burning—practices that contribute significantly to air pollution and are responsible for approximately 1.6 million premature deaths each year.

Dr. Mshelbila stressed the importance of natural gas as a key resource for driving industrialization in developing economies. He urged energy-producing nations to fully harness their natural gas reserves to support their economic development. “Natural gas will play a vital role in powering industries and ensuring sustainable growth in Nigeria and other developing countries,” he stated.

In addition to infrastructure development, Dr. Mshelbila emphasized the importance of diversity, equity, and inclusion in accelerating the energy transition. He called for an inclusive approach to energy policy, ensuring that all members of society have access to affordable and reliable energy sources. This approach, he argued, would help address global inequality while supporting sustainable development.

Other experts on the panel echoed Dr. Mshelbila’s sentiments, emphasizing the need for significant investments in energy infrastructure. They highlighted specific areas where progress is needed, including the development of pipelines, LNG terminals, and storage facilities. Public-private partnerships (PPPs) were identified as a key mechanism for driving collaborative investments, while financing solutions such as green bonds and concessional loans were proposed as innovative ways to fund the energy transition.

The panel also stressed the importance of developing comprehensive national energy plans and establishing robust regulatory frameworks to facilitate the transition. By addressing these areas, developing countries can better position themselves to meet their growing energy demands while reducing their carbon footprints.

Other distinguished panelists included Alan Heng, Group CEO of Pavilion Energy, Singapore; Tze San Koh, President of China Gas Marketing at ExxonMobil; Toshiro Kudama, Head of Asia Pacific Operations at JERA; and Lame Verre, Co-Founder and Chair of the Advisory Board at Lean In Equity & Sustainability, who moderated the session.

The panel concluded with a shared understanding that while the road to energy transition in developing countries is fraught with challenges, the opportunities are vast—particularly for those nations willing to invest in infrastructure and adopt inclusive, forward-thinking energy policies. Dr. Mshelbila’s call for massive investment and his vision for energy equity provide a clear blueprint for how emerging economies can achieve a sustainable energy future.