The Final Investment Decision (FID) on the $25 billion Nigeria Morocco Gas Pipeline Project (NMGP) would be taken in December 2024, the Nigerian National Petroleum Company Limited (NNPC Ltd.) has revealed.
It said that it was time for a different approach towards attaining energy transition for the African continent.
Mr Mele Kyari, Group Chief Executive Officer of NNPC said at a Leadership Dialogue Session at the ongoing CERAWeek Conference in Houston, U.S. tagged “Multidimensional Energy Transition: Markets, Climate, Technology and Geopolitics”.
Kyari, in a statement by Mr Olufemi Soneye, Chief Corporate Communications Officer, NNPC Ltd., said a differentiated approach became necessary as global calls for transition to cleaner energy fuels continued to grow.
According to Kyari, energy transition is a difficult subject for countries especially in sub-Saharan Africa because geographically, the situations are different as many countries are dealing with energy availability.
“The world has seen all the challenges thrown up recently by geopolitical events. It is clear that before energy transition, countries must first attain security of energy supply in their countries.
“You cannot talk about energy security when it is not even available.
“In most sub-Saharan Africa, 70 per cent of the population don’t have access to clean cooking fuels. Therefore, you must fill the supply gap first,” Kyari stated.
He said although people talked about using the renewables to close the energy transition gap, the money for the renewables too must be found.
“If you insist on completing substitution today, then you have to deal with the problem of supply. For us today, the transition must be differentiated.
“Even if Africa decides to switch off its fossil fuels, it only accounts for just about three per cent of the entire global emissions,” he added.
He said the NNPC Ltd. was focused on building its capacity to deliver gas to the domestic market and beyond.
He said as a gas-endowed country, Nigeria must utilise its abundant gas resources to provide the alternative fuel that it required.
“We understand the arguments towards attaining energy transition, but the cheapest way to achieve that is through gas.
“We see clear opportunities that gas creates. Today we are building a number of trunk lines and other gas infrastructure that will supply gas to a number of gas networks,” Kyari noted.
He said there was an ongoing engagement on the Nigeria Morocco Gas Pipeline Project, which had reached advanced stage, to create a pipeline that would pass through 13 African countries and all the way to Europe.
He stated that as the largest oil and gas company and corporate entity in Africa, the NNPC Ltd. was critical to Nigeria’s resource management and economic development.
He said the Petroleum Industry Act had reformed Nigeria’s oil and gas industry.
He said it ensured that NNPC Ltd. emerged as a fully commercial entity, not only accountable to its shareholders, but also on the pathway of getting quoted on the stock exchange.
“Nigeria is fighting the menace of crude oil theft frontally and through the joint efforts of government and private security agencies.
“There has been some reasonable improvements in the restoration of the nation’s crude oil production.
“It is an abnormal situation, but it is well within control. We were able to recover some of our production and build back confidence so that investors can bring in their money.
“We are also doing global advocacy to governments and institutions, because stolen oil has to be taken to the market,” he stated.
He said an example of the improved security situation was when in 2022, Nigeria’s production fell below 1 million barrels per day, which was restored to 1.7 million barrels per day.
CERAWeek is one of the largest energy conferences in the world.
It attracts global energy industry experts and other corporate and government leaders from around the world annually to Houston, U.S. for a week-long conversation on the future of energy.