Nigeria is presently working towards combining all forms of energy to meet potential rise in energy demand.
In its forecast the Organisation of Petroleum Exporting Countries (OPEC) predicted that global primary energy demand would increase by 23 per cent in the period to 2045, which necessitates utilising all forms of energy.
According to the OPEC, based on its World Oil Outlook (WOO) forecast, resultantly, many of its Member Countries had invested heavily in renewables, which had received a positive endorsement from the G20 developing nations.
OPEC Secretary-General Haitham Al Ghais, stated this in Abuja last Monday at the opening of the sixth edition of the Nigeria International Energy Summit (NIES 20223) themed: “Global Perspectives for a Sustainable Energy Future.”
At the summit the Nigerian National Petroleum Company Limited, NNPCL, revealed that the country is heading towards achieving energy efficiency.
Al Ghais listed the renewables as solar, nuclear, wind and waste-to-energy power, in addition to Carbon Capture Utilisation and Storage (CCUS) and hydrogen projects, as well as the Circular Carbon Economy.
“At OPEC, we recognise that the scope of the climate challenge requires comprehensive solutions. There is no panacea that can solve it alone.
“The oil and gas industry can foster its resources and expertise and help unlock our emissions-free future, through its role as a powerful innovator in developing cleaner and more efficient technological solutions.
“A diverse range of mitigation measures are necessary.
“The capacities and national circumstances of developing countries must be taken into account in all actions. We should never forget that climate change and sustainable development are two sides of the same coin,’’ he said.
He said that OPEC, as an intergovernmental organisation, composed exclusively of developing countries, seven of which are African, would want all voices included in discussions on energy transitions.
He said it had been directly involved in the evolution of the United Nations Framework Convention on Climate Change (UNFCCC), from the UN Intergovernmental Negotiating Committee in 1990, to COP27 in Sharm El-Sheikh in 2022.
“We are delighted that COP28 will be hosted by our Member Country, the United Arab Emirates.
“In addition to being involved in climate negotiations, OPEC and its Member Countries are proactive in looking for a diverse range of energy sources to meet the needs of the future,’’ he said.
The secretary-general further said that the global oil sector alone would need cumulative investment of 12.1 trillion dollars through to 2045.
However, he said in recent years, it had heard calls from some to limit or stop funding for new oil and gas projects which was disheartening, and particularly impactful on developing countries with oil and gas resources.
“This great continent, Africa, has 120 billion barrels of proven oil reserves and 18 trillion standard cubic metres of natural gas.
“For countries to properly utilise these resources for the benefit of their people, investment levels must be adequate, whilst taking actions to reduce the carbon footprint of the oil industry.
“However, movements by financial institutions to limit and stringently control how money is invested into fossil fuels under environmental, social and governance (ESG) constraints impedes the realisation of this potential.”
Presenting Nigeria’s position on adapting to climate change initiative and creating opportunities along renewable energy space, group chief executive officer (GCEO), NNPC Limited, Mallam Mele Kyari, stressed that the world today has recognised the need to for ensuring sustainability in the energy landscape which is in line with the current realities and as key players in the energy sector, its mandate of providing energy four for our county still remains a priority.
Kyari said that in order to achieve that, NNPC is poised to reliably deliver energy to its stakeholders through efficient utilisation of hydrocarbons and other new energy sources which Nigeria is blessed with.
He said, “You will agree with me that sustained energy sufficiency directly enables economic growth and development as can be seen in the history of the developed countries. This is why we are focused on efficiently producing energy while minimising the effect on the environment.”
According to him, oil and gas remains a significant component of energy the global energy mix therefore we are unlocking more opportunities across both the oil and gas value chain spanning from supply and infrastructure to the markets.
The GCEO, affirmed determination of the NNPC Limited in actively supporting the federal government towards the realisation of key initiatives such as the Decade of Gas and the National Gas Expansion Programme (NGEP) which seeks to deepen natural gas utilisation as an alternative transportation fuel, virtual gas supply to off-pipeline grid gas customers and gas utilisation as feedstock for the development of gas-based industries.
This, he said, is evident in the definite actions taken to utilize CNG and LNG to power vehicles, buildings and power plants.
Speaking further he stated, “NNPC Limited is also investing heavily in critical gas infrastructure such as the Ajaokuta-Abuja-Kano (AKK) gas pipeline and the OB3 gas interconnector to support 5 Bscf/d of domestic gas utilisation including 5 GW of power generation capacity by developing power plant projects along the AKK pipeline corridor and across the country to complement the existing ones.
“For the gas export market, the on-going NLNG Train 7 will expand Nigeria’s LNG production capacity to about 30 million tons per annum (30 MTPA). This is in addition to the planned Nigerian Morocco and the Trans Sahara Gas Pipeline projects which will supply gas to sub-regional African countries and subsequently Europe.
“In addition to our existing Upstream activities, we are also deepening exploration activities of the Nation’s frontier Basins using the best industry standards and technologies which is already yielding results such as the Kolmani discovery, and we are hopeful that the recent spud-in of the EBENYI – A in Nasarawa State will yield positive result as well.”
Kyari stated that the 6th edition of the Nigeria International Energy Summit has provided the firm with a platform to tell its story and engage further based on its unique landscape and strengths which will eventually contribute to form part of the global narrative, adding, “NNPC will continue to leverage our partnerships with the Industry, Government, Research Institutions and the Academia to ensure energy security and sustainability.”
The OPEC said however that global annual upstream investment requirements especially in the oil sector requires $12.1 trillion investments on annual basis.
Cumulative oil-related investment requirements by sector, 2022-2045, while global oil-related investment requirements total $12.1 trillion (in 2022 US dollars) over the long-term, of which $9.5 tn is needed for the upstream, $1.6 trillion for the downstream, and $1 trillion in the midstream
The organisation maintains that all forms of energy will be needed to support future socio-economic growth, saying that wind and solar energy demand will grow fastest making the energy mix more diversified.
According to the organisation, oil will retain the highest share in the global energy mix over the forecast period and that oil demand growth in the medium-term will be followed by plateauing demand in the long-term.
It further noted that uncertainty to the supply and demand outlook remains high but that adequate and timely investments in the energy sector are critical.
The OPEC scribe however pointed to the fact that despite significant growth in global energy demand, energy poverty will remain a major issue.