FG focusing on gas to close gap created by petrol, diesel, other fossil fuel

The Federal Government said it is focusing on exploitation of gas to close the gap that can be created by less use of petrol, diesel and other fossil fuels, following the gradual exit from fossil fuels.

The Chairman, Board of the Nigerian National Petroleum Company Ltd., (NNPC), Mrs Margrey Chuba-Okadigbo, on Wednesday stated this in her remarks at the ongoing Offshore Technology Conference (OTC) in Houston, Texas in the United States.

The conference was anchored by the Petroleum Technology Association of Nigeria (PETAN), the umbrella body of all the indigenous oil services companies in Nigeria.

According to Chuba-Okadigbo, gas as a transition fuel will not only bridge the energy gap created by the exit of fossil fuels, but enhance economic development.

Chuba-Okadigbo noted that the conference would arm the Nigerian team with the requisite knowledge and latest technology.

This, he said, would help to tackle energy issues as the energy industry players face increasing need for clarification of the implications of energy transition on their operations and business models.

The NNPC board Chairman said that the conference was also to explain the contributions needed to reduce greenhouse gas emissions and to achieve the goals and commitment of the Paris accord and the COP 26.

She said that the increasing social and environmental pressures on many energy companies raise complex questions about the role of oil and gas in a changing energy economy and the positions of those companies in the various societies where they operate.

To her, as the world moves to substitute fossil fuel with other forms of cleaner energies, Nigeria is still faced with numerous challenges in ensuring energy security, deepening domestic gas utilisation and maximising revenues derivable from hydrocarbon resources.

According to her, as world and business leaders join in the global solidarity against climate change and reduction of carbon emissions, NNPC Ltd., is taking giant strides in lowering her carbon footprints, sustaining energy security and driving prosperity in Nigeria.

She said, “We believe that achieving and sustaining a carbon neutral economy requires inclusive policy actions that guarantee access to finance and low carbon technology.

“Recently, Nigerians witnessed the enactment of the Petroleum Industry Act (PIA) 2012, which guarantees a reasonable return on investments, promotes business and operational transparency and proffers better fiscal regimes than it was in the past.

“In effect, this Act provides the legal framework and guarantees investors’ confidence.

“Therefore, it is expected that a much more significant change in overall capital allocation would be required to accelerate energy transition, especially in getting some key capital intensives, clean energy technologies to reach maturity.”

Earlier in his remarks, Chairman of PETAN, Mr Nicholas Odinuwe, said the theme of the workshop, “Energy transition and the future of Africa,” underscores the fact that Africa is said to the last energy frontier and global hub as there is a global energy revolution and the quest for alternative and cleaner sources of energy.

However, he said, developing countries were keeping an open mind in the choices of their energy mix as they take cognisance of what best works for their heterogeneous populations.

According to him, energy access is critical, so is funding and so to fulfill the needs of the industry and secure future investment and energy security in Africa, emphasis should be on collaboration, entrepreneurship, innovation and funding.

He reminded the gathering that many African countries, companies, and individuals had made huge investments in the energy sector and the economy of many African countries depends largely on stakeholders.

“It is expedient that the region begins to examine those critical issues and proffer solutions on how to properly position the sector for maximum economic transformation.”