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Augustine Aminu
As the global energy sector gravitates towards a new regime of energy transition, Nigeria and other oil-rich countries in Africa need to prioritize the development of natural gas resources in order to maximize its benefits.
Nigeria, the most populous country in Africa is currently the largest natural gas reserves on the continent and is the 12th largest producer of petroleum in the world. The country’s oil sector comprises 20 percent of its Gross Domestic Product (GDP) and 95 percent of foreign exchange earnings.
According to the Department of Petroleum Resources (DPR), Nigeria has proven gas deposits of 206.53 trillion cubic feet. Located in western Africa on the Gulf of Guinea, the West African nation’s biggest natural gas operator is the Nigerian Liquefied Natural Gas (LNG) Company.
Africa is a continent richly endowed with natural resources with almost half of its 55 countries known to have proven natural gas reserves. Across the entire continent, natural gas reserves amount to a total of more than 800 trillion cubic feet, with British Petroleum (BP) predicting that the production of natural gas in the continent will expand by 80 percent by 2035, contributing to rising Gross Domestic Profit (GDP), the emergence of middle-class consumers and increased market value.
As a major source of wealth and energy in Africa, the development of oil and gas resources proves critical for economic growth and revenue expansion.
Regrettably, Africa has not demonstrated enough zeal and commitment to optimizing the benefits of her huge gas reserves and this has culminated in holding the continent down in terms of economic development.
In its outlook for 2022 published on Monday (today) the International Energy Agency (IEA), warned that time is running out for Africa to profit from its gas resources, noting that they must act quickly to profit from its vast reserves of natural gas that the world will only want until it can shift towards lower carbon technology.
The IEA said Africa could be in a position by the end of the decade to export some 30 billion cubic metres (bcm) to Europe, which is currently hungry for gas because it is trying to reduce its reliance on Russia.
“New long lead time gas projects risk failing to recover their upfront costs if the world is successful in bringing down gas demand in line with reaching net zero emissions by mid‐century,” the Paris-based agency said in its report.
To reduce new developments and emissions, the IEA further stated that flaring less methane could provide a third of new output.
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Executive Director, Fatih Birol told Reuters in an interview: Africa, where a fifth of the world’s population lives, has borne the brunt of climate change even though it has emitted just a tiny fraction of the emissions caused by the developed world and it has limited time to earn hydrocarbon revenues.
“If we make a list of the top 500 things we need to do to be in line with our climate targets, what Africa does with its gas does not make that list”. “
If all of Africa’s gas discoveries turned into production, Birol said that could provide an additional 90 bcm per year by 2030, around two-thirds for domestic needs, and the rest for export”, Birol added.
Nigeria’s Minister of State for Petroleum Resources, Chief Timipre Sylva said Nigeria was following a transition pathway that combined technology, investment, business strategies, adding that government policy that would enable the country to transit from its current energy system to a low-carbon energy system.
The minister noted that natural gas would be playing a pivotal role in this transition over the next generation, roughly between now and 2060.
“Natural gas is a key resource for a just energy transition and has all the credentials to support Nigeria to meet up with her commitment with the United Nations 17 Sustainable Development Goals (SDGs)”.
“Natural gas will play a critical and long-term role in achieving energy security and enhancing environmental outcomes for Nigerians as the global energy sector undergoes unprecedented change”, he further explained.
Nigeria, according to him, was well-positioned to pioneer future natural gas technology and compete in global markets that were constantly changing, adding that the country had huge natural gas reserves and a highly skilled workforce.
The minister further disclosed that the Federal Government is currently working to grow the country’s gas reserve from 206 trillion cubic feet to 600 TCF. He said the increase would position Nigeria among the countries with the highest gas reserves in the world.
Chief Sylva stressed that the 600 trillion cubic feet reserve will enable Nigeria to achieve the desired development required of a gas nation.
“We have a lot of gas in Nigeria. We currently have 206 trillion cubic feet of gas reserves. The future of oil and gas industry in Nigeria is still very bright when we talk about energy transition, we are not expecting that oil will be discarded the next day”.
”We are saying that over the years, oil will account for less and less percentage in the global energy mix. It means that oil is still going to be relevant but it will not to be as relevant as it is today, but it not going to happen just now”.
“It’s going to happen years to come, so there is still a lot of opportunities in growing the oil industry. That’s why we are here to collaborate with the rest of the global community to develop oil industry. We’ve never discountenance that the world is serious about energy transition”, he stressed.
