Engr. Justice Derefaka, Technical Adviser(TA), Gas Business and Policy Implementation to the Hon. Minister of State for Petroleum Resources, Chief Timiprye Silva, a strong advocate of FG’s Gas Reforms, reveals how 100 million Nigerians can be taken out of energy poverty, reports EDDY OCHIGBO
Nigeria’s Oil and Gas Industry watchers believe that as gas is fast becoming a dominant fuel for power generation globally, the country stands in a good stead to take advantage of the enormous opportunities that abound to break new grounds in the sector, especially with its over 206TCF of proven gas reserves, and to judiciously utilize same for the overall socio-economic development of the nation.
While presenting a special technical paper at the 39th Nigerian Association of Petroleum Explorationists (NAPE) Annual International Conference and Exhibition (AICE) 2021, tagged “Natural Gas: A Bridge Fuel for the 21st Century, Emerging Technologies and the Role of the Industry”, Engr Derefaka declared:
“Driven by overreaching mega trends shaping the future of the world, the transition to low-carbon future will unfold at different paces and across all sectors of economic activity.”
New technologies, business models, and partnerships, supported by policy and regulatory frameworks, he went on, would be needed because the industry would play its role in a way that is commercially competitive, as well as environmentally and socially responsible in oil and gas, in low-carbon and renewable energy.
“We are unlocking the natural gas potential of Nigeria that will drag over 100 million Nigerians out of energy poverty. The Federal Government remains committed to transforming Nigeria through optimizing of its gas resources and has adopted gas as the nation’s energy transition fuel”, Derefaka remarked, pointing out that the Federal Government has initiated policies such as the National Gas Expansion Programme (NGEP), the National Gas Flare Commercialisation Programme (NGFCP) and the National Gas Transportation Network Code (NGTNC), all in a bid to turn things around in the sector.
He maintained that the Declaration of 2021 to 2030 as the ‘Decade of Gas’ by the Federal Government was aimed at stimulating the sector’s contribution to national development by deepening gas utilisation in the country.
“As a nation, we are working on converting the massive quantity of gas being flared now to energy for Nigerians with the commencement of the NGEP and the NGFCP. We are dealing with the energy poverty in the country. The major objective of the Muhammadu Buhari-led administration is to transform Nigeria into an industrialized nation, with gas playing a major role”, he said.
While noting that the Central Bank of Nigeria (CBN) N250 billion gas sector intervention fund would help for optimal development of the sector within the next decade, he assured that the passage of the Petroleum Industry Act, the Auto Gas Scheme, as well as infrastructure projects such as the Ajaokuta-Kaduna-Kano pipeline were geared towards actualizing the overall objective of the federal government.
“Our sources depend on our ability to anticipate the types of energy that people will need, he said, recalling that the United Nations (UN) had recently described energy as ‘central to nearly every major challenge and opportunity the world faces today; be it for job security, climate change, food production, or increasing incomes and access to energy for all’. Derefaka reiterated that today, despite the hues and cries about the need for a new beginning, little or no access to energy is still depriving part of the world’s population of opportunity to improve their quality of life.
Ending energy poverty to ensure universal access to electricity and modern energy sources for cooking and heating, he maintained, must henceforth be the focus of all stakeholders in the industry. According to the Technical Adviser to the Minister, “energy transition for a rapidly changing world – with a fast-growing world population – as living standards are improving, requires deliberate steps for progress and prosperity.
“Energy transition in a rapidly changing world, with a fast- growing population and improved living standards requires steps to ensure that we make continuous progress and prosper against the backdrop of the world’s quest for more and cleaner energy. Apart from the collective will and ingenuity to develop these bright energy ideas, we need to work together to bring them into fruition and put them into action. The IEA predicts a rise in electricity generation by 65% from 2014 to 2040, with gas-fired power growing by 73%. Similarly, electricity demand is projected to grow at 2% by two-thirds to 2040”, Derefaka stated.
He listed the core planks of the nation’s National Gas Policy to include:
= Industry Structure: Implementation of domestic gas supply obligations;
= Mixed public-private participation, with clear separation of roles between government and the private sector;
= Infrastructure development of key gas formations; and
= Development of national human resource.