From Our Correspondent
Nigeria LNG Limited (NLNG) says there is a real demand for clean energy such as gas in Africa to trigger a massive take-off for industrialisation, with a growing young population, abundant natural resources, and emerging internal markets.
Dr Philip Mshelbila, NLNG’s Managing Director, made these remarks at the ongoing 7th Nigeria International Energy Summit (NIES) in Abuja.
TheNewsZenith reports that Mr Olakunle Osobu, NLNG’s Deputy Managing Director represented Mshelbila at the summit.
Mshelbila noted that the potential for growth in Africa relies heavily on energy to provide the necessary amenities in line with the UN Sustainable Development Goals.
According to him, gas remains a viable revenue generation strategy, experiencing a surge in demand due to its role as a clean energy option and transition fuel, both in Africa and globally.
“Global demand is projected to increase to 5.1 trillion cubic meters by 2035,” Mshelbila stated.
The NLNG boss noted that Africa would require substantial investments to increase gas production. And to ensure the supply of significant volumes of natural gas to the world market in the future.
He emphasised that Africa, especially Nigeria, must take essential steps to attract the necessary investment for enhancing the gas industry from exploration to production.
“Despite the gas potential in Nigeria, our country struggles with inadequate infrastructure to efficiently harness and distribute our gas resources.
“This infrastructure gap has not only hampered domestic energy growth and power generation but also the country’s ability to meet its export commitments, posing a tremendous risk to our viability as a reliable and competitive gas supplier,” he said.
Mshelbila added that a dearth of investors significantly impacts the availability of capital necessary to enhance gas infrastructure within the country.
He recalled that in August, 2022, the Federal Government estimated a yearly investment of $20 billion to bridge the gas infrastructure gap in Nigeria in the next 10 years.
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Mshelbila, therefore, called for deliberate efforts to move the needle on the Decade of Gas programme by the Federal Government.
He noted that the Petroleum Industry Act (PIA) has potential to reshape both the industry landscape and address deficiencies in the country’s gas infrastructure.
Meanwhile, in another presentation, NLNG’s General Manager, Finance, Mrs Fatima Adanan, called for increased consumer awareness, especially in rural areas, on the use of Liquified Petroleum Gas (LPG).
Adanan said the call became apt to enhance utilisation and reduce associated risks from using biomass for cooking.
The General Manager underscored the need for a campaign to transition biomass users to LPG for cooking in the market.
She said the goal was to increase LPG usage in Nigeria. This will then alter the current energy mix and achieve deeper penetration of LPG.
According to Adanan, the market consumption in Nigeria is about 1.5 million metric tons with the potential to increase exponentially.
“NLNG supplies close to 500,000 metric tons to meet the market’s demand, fulfilling its commitment to supply 100 per cent of its LPG production to the domestic market,” she said.
Adanan explained that NLNG was trying hard to make the product available and affordable. She said the company now sells LPG at a competitive price with payments made in Naira.
She said the company was ready to work with stakeholders to deepen LPG utilisation.
The Manager called on indigenous companies to participate actively in the distribution network and contribute to a robust value chain.
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