Gas summit: Nigeria policies support framework for integrated energy mix – Minister of Gas, Ekpo

By Anthony Maliki at the summit in Abuja

The Minister of Petroleum Resources (Gas), Rt. Hon. Ekperipe Ekpo has affirmed that policies of the federal government are tailored to support a robust framework for successful integration of an energy mix.

He said the vision is clear as Nigeria is working towards a sustainable resilient gas and renewable energy sector.

The minister made the remarks in Abuja Tuesday at the 2nd Domestic Gas and Gas Infrastructure Summit held at the Abuja Chamber of Commerce and Industry.

The summit has as theme “Building a sustainable, resilient gas and renewable energy sector in Nigeria and beyond.”

Ekpo said gas roadmap is not just about pipelines and power it is about the people.

According to him, government’s commitment to creating greater solution in any transition is unwavering and dedicated to building a resilient and sustainable energy industry.

He said such industry would include and benefit every citizen and recognizing the role of women in energy, ensuring inclusivity and leveraging on diversity as a strength.

The minister pointed out that the prospect of liquefied natural gas and compressed natural gas remains not just for domestic markets but also for regional energy dynamics.

Ekpo noted that financial models are being restructured to support these potentials ensuring that the economic benefits of gas expansion are far-reaching providing cleaner and more efficient energy solutions.

He explained that in the quest for diversification and sustainability, the sector is also looking at alternative energy sources and expansion of methanol production stands out.

He stressed that the creation of Minister of Petroleum Resources (Gas) by the present administration underscores the importance of gas in Nigeria’s developing economy.

The Minister of Power, Adebayo Adelabu in a goodwill message said the summit marks a pivotal milestone in the collective journey towards harnessing the transformative potential of domestic gas resources and building robust gas infrastructure and renewable energy for a sustainable future.

The Minister was represented by the Director Energy Resources in the ministry, Engineer Ojo Emmanuel.

He said in these extraordinary times, the significance of the gas summit cannot be overstated as we face an ever-evolving landscape of challenges.

Adelabu pointed out that it is evident that a resilient, efficient, and accessible gas infrastructure and renewable energy is the key to unlocking new opportunities and fostering economic growth on a global scale.

The minister said despite being a major global producer of gas and endowed with one of the largest gas reserves in the world, Nigeria has struggled to deliver sufficient gas to the domestic market amid growing demand.

According to him, the importance of gas in the Nigerian economy cannot be overemphasized as it is a potent source of electricity generation that will sustain the much-needed power for national development.

He revealed that presently on-grid energy mix in Nigeria is dominated by thermal (80%) and hydro (20%) power generating sources.

Adelabu pointed out that addressing climate change alongside achieving sustainable development objectives is core to the approach to power sector investments.

He noted that Natural gas has a role as the energy transition fuel for rapid economic growth and industrialization.

The minister also explained that given the interdependence of the gas and power sectors, there is need for a coordinated approach to policy formulation and implementation by both sector in other to achieve government objective of improving energy security and reducing energy poverty.

The President, Abuja Chamber of Commerce and Industry (ACCI), Dr Al-Mujtaba Abubakar represented by Chairman, ACCI Energy Trade Group, Chinedu Maduakoh, said the summit is to promote the critical discussion of various issues centred on rejuvenating the Nigerian gas industry.

According to him, globally, natural gas has replaced coal as the fuel of choice for electricity production, with climate and air quality benefits.

Dr Abubakar noted gas has a special role in the energy transition as a backup to a renewable-based power system because gas boilers can be turned on almost instantly while starting up a coal-fired power plant takes much longer.

He said according to research, Nigeria currently accounts for 33 per cent of the total gas reserves in Africa with a reserve base of 36.97 billion barrels of oil and 208.83 trillion cubic feet of gas.

The president said Nigeria can be described as a gas-rich nation ranking number one in Africa in reserves with a life index of 94 years.

The Managing Director of Falcon Corporation Ltd., Prof Joseph Ezigbo expressed dismay that regulated gas price limits investors’ confidence on commercial viability of projects and promotes inefficiency as pegged price may not be reflective of actual cost.

He also said gas suppliers continue to suffer from payment defaults and liquidity constraints from the power sector value chain.

Prof Ezigbo noted that there are investment opportunities in various aspects of the gas utilization value chain such as PNG, LNG, LPG, Compressed Natural Gas (CNG), Methanol, Thermal Power Generation, Ammonia/Urea, and Methanol-to-Olefins among others.

On the regulation, he said the PIA encapsulates the numerous reforms which will improve efficiency and attract investments in the long run.

He however expressed worry that for many years, the gas sector was and still being constrained by inadequate infrastructure especially for the processing, transmission, and distribution of natural gas within Nigeria.

The Director-General, ACCI, Dr. Victoria Akai said the domestic gas sector presents a unique opportunity for us to diversify our economy, create jobs and reduce carbon emissions.

She lauded President Tinubu-led administration for affirming the position of natural gas as Nigeria’s gateway to sustainable development and prosperity, pledging to build partnership with investors that will guarantee job opportunities and skill development for Nigerians.

Dr Akai urged industry players to leverage the outcomes of the summit to ensure a more vibrant domestic gas industry in Nigeria.