The Group Executive Director, Upstream of the Nigerian National Petroleum Company Ltd, Adokiye Tombomieye, has said that the aggressive move towards a carbon zero emission will boost the ability of Nigerian oil and gas companies to attract funding for their multi-billion-dollar gas projects.
According to him, the country’s energy transition will create significant investment opportunities such as the establishment and expansion of industries related to solar energy, hydrogen, and electric vehicles.
He said, “Before the window closes on fossil fuel, Nigeria must utilize its huge oil and gas resources to boost our economy and promote sustainable growth and social development for the present and future generations.
“Nigeria must therefore move away from being an energy exporting country to an energy utilization country; by processing and utilizing our crude oil and gas for our domestic energy needs in order to drive industrialization, create jobs, and provide electricity for over 200 million Nigerians. No one will do this for us – things must change.”
He said this at the 2022 Annual Conference of the Association of Professional Women Engineers (APWEN), held in Abuja, yesterday.
Tombomieye who is the Patron of APWEN spoke on the theme: “Just Energy Transition Strategy: An Enabler For Sustainable Development in Nigeria.”
As the push for energy transition hits oil producers, Nigeria, Africa’s largest oil exporter has declared the years 2021-2030 as the Decade of Gas which is a clear indication of the country’s resolve to drive economic growth with natural gas exploitation.
At the COP26 in Glasgow, African leaders argued for a just energy transition as the continent alongside other ‘victims’ have chosen 2060 for carbon zero.
Already, funding for crude projects by banks has depreciated, while big oil companies are diversifying to renewables.
As a hedge, NNPC Ltd has sealed a Memorandum of Understanding on the gas pipeline project with the National Office of Hydrocarbons and Mines of Morocco and the ECOWAS Commission.
The deal is expected to drive the execution of the 7,000km Nigeria-Morocco gas pipeline project.
The NNPC is also planning to tap the European gas market through its gas projects.
Tombomieye said, “The Energy transition will continue to impact the ability of Nigeria and oil and gas companies to attract capital as banks and investors prioritize Environmental, Social, and Governance factors and are moving away from funding hydrocarbon projects.
“Globally, the transportation sector generates the largest share of greenhouse gas emissions which primarily comes from burning fossil fuels for our cars, trucks, ships, trains, and planes; 90 per cent of the fuel used for transportation is petroleum based, which includes primarily gasoline and diesel.”
According to him, about 60 per cent of the fossil fuel market in Nigeria is driven by the transportation industry and this is a very significant consumption percentage for fossil fuels.
He added that the replacement of the Internal Combustion Engine with Electric Vehicles (EVs) will automatically affect the market demand for fossil fuel vehicles.
He said, “With about 60 per cent of your fossil fuel (crude oil) demand impacted, it will significantly and negatively impact crude oil production.
“Unfortunately, for us in Nigeria, we produce and sell crude oil, which is an anti-energy transition. Nigeria is endowed with abundant natural resources.”
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) estimated the country’s Crude Oil reserves at 37.046 billion barrels and Gas reserves at 208.62TCF as of January 31, this year.
Tombomieye said the usage of renewables; solar, wind, tidal wave, and natural gas remains a very important transition fuel for sustainable development and Nigeria has a healthy balance of gas and oil.
“The good news is that financial Institutions will fund gas projects. Therefore, leveraging upon gas development will be a way for Nigeria to navigate the energy transition mantra.
“Energy transition also comes with the opportunities of carbon credits and because Nigeria produces gas and oil, we can market our carbon which will also be an incentive for us to process funding from Financial Institutions,” he said.
