The Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engr. Gbenga Komolafe, has reaffirmed Nigeria’s commitment to utilizing natural gas as a key driver for its energy transition. Speaking at the 2024 Association of Energy Correspondents of Nigeria (NAEC) Annual Conference at Eko Hotel & Suites, Lagos, Komolafe highlighted the role of gas in navigating the nation’s challenges of finance, energy security, and international politics.
Addressing the conference theme, “Gas as Energy Transition Fuel: Navigating Nigeria’s Trilemma of Finance, Energy Security, and International Politics,” Komolafe emphasized the urgent need to balance Nigeria’s energy security with global climate goals, particularly in the post-Paris Agreement era.
He noted that the Decade of Gas initiative, launched by the federal government, is designed to position natural gas as a cleaner alternative to oil and coal while driving economic development and industrialization. According to Komolafe, natural gas offers a strategic solution for addressing Nigeria’s energy needs while reducing carbon emissions. “The government has declared natural gas as our immediate transition fuel,” Komolafe said, adding that gas will play a significant role in Nigeria’s energy mix by 2030 and beyond.
Komolafe acknowledged the global push for decarbonization, citing the COP28 Summit’s goal of tripling global renewable power capacity by 2030. He also stressed the importance of adopting a “just transition” approach that takes into account Nigeria’s unique economic landscape and energy requirements.
Komolafe highlighted the growth in domestic gas demand, which is expected to rise by a compound annual growth rate of 16.6% between 2020 and 2030. However, this demand could outstrip supply, leading to a potential shortfall of 3.1 billion cubic feet per day by 2030 under the “Base Case Demand and Supply” scenario.
He pointed to major gas projects like the Nigeria-Morocco Pipeline, the Ajaokuta-Kaduna-Kano (AKK) Natural Gas Pipeline, and NLNG Train 7 & 8 as critical drivers of gas production, projecting an increase from 8.0 billion cubic feet per day (bcfd) in 2020 to 12.2 bcfd by 2030. Despite these efforts, the high demand scenario could reach 22.2 bcfd, requiring additional investments to bridge the gap.
Komolafe emphasized that Nigeria’s gas sector offers numerous investment opportunities, especially in gas flaring reduction, Liquefied Petroleum Gas (LPG) production, and power generation. The Nigerian Gas Flare Commercialization Programme (NGFCP) aims to eliminate flaring while monetizing gas resources, contributing to the country’s energy security and sustainability goals.
Through the Petroleum Industry Act (PIA) of 2021, the NUPRC is actively driving cleaner hydrocarbon development and attracting investments in gas infrastructure. Komolafe noted that Nigeria is well-positioned to emerge as a global energy player, with a growing population, abundant gas resources, and a commitment to achieving energy security.
In his concluding remarks, Komolafe called for enhanced collaboration among stakeholders to unlock Nigeria’s energy potential and secure a sustainable future. “Energy security is the cornerstone of national development,” he said, urging participants to see the conference as a call to action for securing Nigeria’s energy future and ensuring shared prosperity.
The NAEC 2024 Annual Conference brought together industry leaders, government officials, and energy experts to discuss the future of Nigeria’s energy sector and explore pathways for navigating the country’s trilemma of finance, energy security, and international politics.