Oil and gas industry operators say Nigeria should not be stampeded into adopting Western countries’ energy transition plans that could hurt its development, but to transit to clean energy at its own pace, using its most available resource- gas.
On account of economic shutdowns to halt the pelting march of a pathogen, the world recorded about 8 percent drop in global emissions on the back of reduced demand for oil. Now, western nations are preparing rules to further blunt the rapid rise of crude.
The European Union is proposing a carbon border charge, which will impose the levy on non-EU competitors unless they commit to lowering their emissions. While this is essentially to ensure the survival of its own industries, it demonstrates how oil dependent nations who try to jettison oil quickly can be hurt, operators say.
Roger Brown, CEO of Seplat Petroleum Development Company, in a presenation at the Nigerian Gas Association (NGA) Multilogues, last week, said that Western Nations still power their grid with hydrocarbons, urging the Nigerian government to prioritise its interest.
“We should not be distracted by talks about where investments are being directed but we need too set our own transition agenda,” Brown said.
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Brown said that Nigeria’s grid requires a baseload that may not be fully met by renewables and it should prioritised meeting is energy needs with gas now and renewables in the future.
Nigeria’s developmental needs require it must create affordable energy to get healthcare, food security, education and energy access where it needs to be and gas is the route for that, Brown said.
Osagie Okunbor, managing director SPDC & Country Chair, Shell Companies in Nigeria (SCiN) cautioned that Nigeria should not be so fixated with energy transition to renawables at the expenses of its most viable resources, gas.
Okunbor said that the country’s regulatory approach to gas should not be too focused on extracting rent as it did oil, but to create a fiscal and regulatory environment that will spur investments into gas projects because they have a salutary effect on the economy.
The industry experts warn that time is running out and Nigeria must quicken action on developing its gas resources.
“The higher level of resilience seen in gas producing nations signals that Nigeria needs to deepen its domestic gas industry as quickly as possible to dampen the debilitating fiscal impact of overdependence on crude oil,” said Joe Audrey Ezigbo, outgoing president of the Nigerian Gas Association.
