NMDPRA calls for more collaboration in oil, gas industry to create sustainable energy future
By Yusuf Yunus
Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has urged stakeholders in the oil and gas sector to continue to collaborate to create a sustainable energy future for the industry.
Mr Farouk Ahmed, the Authority’s Chief Executive, disclosed this at the ongoing 46th edition of the Nigerian Annual International Conference & Exhibition (NAICE) of the Society of Petroleum Engineers Nigeria Council conference, in Lagos on Monday.
Ahmed was represented by Dr Mustapha Lamode, Executive Director, Health, Safety, Environment and Community of NMDPRA said that this year’s theme – “Balancing Energy Accessibility, Affordability and Sustainability: Strategic Options for Africa”, is very apt and aligns with Nigeria’s goal on energy security.
According to him, as the global energy transition and energy demand increases significantly, Africa as a continent, still grapples with energy poverty and security, where about 60 per cent of the populace lacks access to energy and clean cooking fuel.
“The energy sector in Nigeria and across Africa faces an existential challenge of the urgent need to transit from a fossil fuel dependent economy to a decarbonized economy.
” There is more to energy transition than decarbonization in our region as millions of people in sub-Sharan Africa still live or are living without access to electricity while some only have access to very limited or unreliable electricity.
“This is amidst old and insufficient infrastructure, growing energy demand with few energy sources, a vibrant young population and the list goes on.
“Economic prosperity is deeply dependent on energy access and consumption and as most of us know, this is the challenge for most countries in African,” he said.
Ahmed said that currently, environmental sustainability is majorly driving the energy transition, but transition to a decarbonised system can only be successful if it simultaneously provides access to affordable energy, facilitates economic growth and development along with environmental sustainability.
He said that energy is the most critical enabler and driver required to develop, sustain, and grow national, regional, and global economic activities in its entire spectrum and will continue to be a major subject of strategic reviews at all levels of government, conferences such as this and organized private sector undertakings.
Ahmed said: “You will all agree with me that Africa’s energy need for strong economic gain requires that energy be accessible to all, affordable and available in an optimally sustainable manner.
“Africa has abundant natural gas reserves estimated at between 620 Tcf (Statista, 2022), and is becoming the dominant energy source according to the Gas Exporting Countries Forum (GECF).
” Nigeria’s proven gas reserves is also currently estimated to be about 206 210 TCF. This has the potential to unlock economic development and GDP growth for the country.
“And recent gas discoveries in Senegal and Mauritania shows that West Africa is primed to be a gas region.
“Natural gas has been globally recognized as our transition fuel as it clearly offers a strategic competitive advantage to powering our continent sustainably through the creation of energy access for all in the short to medium term.
“The Federal Government has declared year 2020 as the Year of Gas and the years 2021 – 2030 as the Decade of Gas,” he added.
He said that the pronouncements heralded the implementation of several midstream gas investment initiatives such as The Nigerian Gas Expansion Programme and The Nigerian Gas Transportation Network Code.
The NMDPRA boss said that the Petroleum Industry Act (PIA) 2021 enunciates the importance of the midstream sector of the oil and gas industry as a critical tool and strategic driver for actualising our energy sustainability through gas development and utilization, creation of jobs and diversification of the economy.
The NMDPRA boss said that NMDPRA is galvanizing this sector by addressing the dilemma of energy accessibility, affordability and sustainability by unlocking the full potential of natural gas which is the cleanest fossil fuel so far and has multiplier effects on all sectors of the economy, from agriculture, manufacturing, power, petrochemicals, etc.
He said that natural gas has been incorporated in several policy documents such as the National Development Plan, Nationally Determined Contributions, Energy Transition Plan, etc, all stressing the importance of natural gas in the decarbonization journey.
“Of recent, we established the Decade of Gas Secretariat, at our Abuja office, which is tasked to develop an aligned plan involving key stakeholders in the public and private sectors to unlock Nigeria’s abundant gas reserves over the next 10 years.
The Nigeria-Morocco Gas Pipeline and Tran-Saharan Gas Pipeline are key midstream gas projects that when completed, will place Nigeria as a major gas exporter to West Africa and Europe and build stronger ties between Nigeria, West Africa and Europe.
“Also, The PIA has created the Midstream and Downstream Gas Infrastructure Fund (MDGIF), domiciled in the Authority – a key lever and enabler for de-risking investments in the midstream and downstream gas value chain.
“The MDGIF is to cater for the gap in gas infrastructure in many parts of the country and encourage local participation in gas-based industrialization aimed at deepening domestic gas utilisation.
“Furthermore, the Authority has emplaced relevant regulatory frameworks (from our gazzetted rRegulations and Gguidelines) for project monitoring to ensure emission reduction and decarbonization strategies are embedded into all projects from conceptualization in alignment to Government’s commitment to a carbon-neutrality – Goal Zero targets by 2060, Fugitive/Greenhouse gases (GHG) reduction by 2031 and, in the same vein eliminating gas flaring by 2030.
” We are also actively exploring and facilitating technologies that enable cleaner processing of fossil fuels for mandatory adoption industry wide.
“As the energy transition evolves, there is an opportunity to accelerate development across the gas value chain, providing a low-carbon bridge to a future of sustainable energy,” he concluded.
He said that the Authority shall be available throughout the conference at its exhibition stand to provide further clarity required with respect to the above strategic regulatory roles of the NMDPRA.
“This conference shall undoubtedly be very strategic for not just the Nigerian energy sector but Africa as well, in that all the key players in this critical sector of our economy are gathered, to review and establish profound insights into how the rich resourced base Nigerian energy sector can create the long outstanding strategic economic impact that is urgently expected of it.
“For us as regulators, this discussion on the theme of the conference could not have come at a better time than this; we would expect contributions, criticism of existing strategies and new solutions to energy balancing, sustainability and affordability.
“So let us continue to collaborate in order to create a sustainable energy future for our industry.
