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Global Energy Transition, An Opportunity for Nigerian Oil & Gas Industry – Wabote

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NCDMB, partners to produce 10% local LPG demand

Lucky MOMOH

ABUJA- THE ongoing disruptions in the international energy industry present a unique opportunity for the Nigerian oil and gas industry to attract investments and serve as one of the leading hubs to meet global energy needs.

The Executive Secretary of the Nigeria Content Development and Monitoring Board, (NCDMB) Engr. Simbi Kesiye Wabote stated this recently in a lecture he delivered at the Society of Petroleum Engineers – Oloibiri Lecture Series and Energy Forum (SPE – OLEF) 2022 held in Abuja.

He spoke on the theme, “Global Energy Transition: Implications on Future Investments in the Nigerian Oil and Gas Industry,” and maintained that the clamour by developed countries to reduce carbon emissions through cutting the utilization of fossil fuels is because those nations have run out of hydrocarbon reserves.

The Executive Secretary outlined his perspectives on global energy transition, its implications on global energy security and investments, and the opportunities for the oil and gas industry in Nigeria, pointing out that the outcome of energy transitions has always been the redistribution of the constituents in the energy mix rather than the outright swap of one form of energy for another.

He said the rush to move the world away from fossil fuels has resulted in first world countries shifting funding away from the development of hydrocarbons towards renewable energy, and energy shortage, causing a decline in the supply of hydrocarbons due to lack of investments, because the pace of the shift to renewable energies is unable to meet world energy demand.

Bearing in mind the technological capability and natural endowments as key drivers to the energy mix, the Nigerian Content Chieftain observed that divestments have resulted in the emergence of indigenous companies playing major roles in exploration and production activities such that companies like Aiteo, First E&P, Eroton and others have acquired assets and are now responsible for the production of about fifteen percent of the nation’s oil and more than sixty percent of domestic gas.

He decried the divestment of the IOCs and their reluctance to make further investment in oil and gas which has resulted in the repatriation of capital out of Nigeria. He lamented that this has stifled the nation’s economy of the much-needed foreign exchange and funds used as loans to acquire oil and gas assets instead of developing new production assets. He also hinted that energy shortage has provided a huge opportunity for the Nigerian oil and gas industry by diversifying oil and gas energy hubs even as it works on adding renewables to the global energy mix to ensure energy security.

Wabote canvassed for a balance between the drive for renewables and new investments in fossil fuels, warning that a misalignment in the transition strategy will result in supply and demand disruptions as witnessed in the current situation in Europe.

He further suggested that as the world continues to expand the options of sources of energy available for use, it should be open to welcome new additions without discarding existing ones. He however, bemoaned the demonizing or de-marketing of other energy sources and setting unrealistic deadlines for countries to abandon fossil fuels. He expressed hope that nations will jealously guard their local sources of energy to ensure it remains in their energy mix for the benefit of its people.

 

Energy

NMDPRA Sets Digital Gas Distribution Licence Auction Date

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Subsidy Removal: NMDPRA Assures Smooth Fuel Supply

With the completion of a nationwide gas-grid mapping exercise expected in October, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has revealed that the digital licensing round for gas distribution areas will happen before the end of 2026.

The Authority Chief Executive, Engr. Rabiu Umar, made the disclosure on Wednesday at the Gas Investment Forum 2026, themed “Positioning Nigeria as Africa’s Global Gas Powerhouse.”

Umar said applicants would bid for gas distribution licences in designated areas across the country under a process similar to the award of Oil Mining Licences (OMLs) in the upstream sector.

“Under the licensing round, applicants will bid for gas distribution licences in the gridded areas available across the country, in the same way licensees apply for Oil Mining Licences (OMLs) in the upstream sector,” he said.

READ ALSO: MT Asharami Ghana Delivers 5,000MT LPG Cargo to Ghana

He said the initiative was part of efforts to move Nigeria from a fragmented gas-access system to an open-access regime that would allow more participants to use existing infrastructure.

“Without infrastructure, reserves are potential. They will continue to have potential,” Umar said.

“With infrastructure, gas becomes productivity and national resilience, especially in the light of the global headwinds that we see.”

According to him, the country needs infrastructure capable of moving gas from wellheads to processing plants, power stations, industrial clusters, transport corridors, homes and export terminals.

Umar said the Federal Government’s Decade of Gas Initiative was serving as an “engine of execution”, while NMDPRA was accelerating licences and approvals for gas processing plants, pipelines, storage facilities, compressed natural gas (CNG) and liquefied natural gas (LNG) projects.

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MT Asharami Ghana Delivers 5,000MT LPG Cargo to Ghana

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As part of efforts to position Ghana as a strategic hub for regional energy trade, MT Asharami Ghana, a 40,000-cubic-metre Liquefied Petroleum Gas (LPG) carrier has delivered 5,000 metric tonnes of LPG in its maiden voyage to Ghana, thus boosting efforts to strengthen energy security, and LPG supply reliability.

Purpose-built to serve Ghana and neighbouring markets, MT Asharami Ghana forms part of Sahara Group’s integrated LPG infrastructure strategy across Africa.

Welcoming the vessel, Hon. Dr. John Abdulai Jinapor, Minister for Energy and Green Transition, described the arrival of MT Asharami Ghana as a major boost to Ghana’s clean energy ambitions.

“The arrival of MT Asharami Ghana represents a significant step forward in our quest to expand access to cleaner energy solutions for Ghanaians. As we work towards increasing LPG adoption across the country, investments like this are essential to strengthening supply reliability and achieving our clean cooking objectives.”

READ ALSO: Nigeria @ 66: Chevron Reaffirms Commitment to Partnership with Nigeria

The Minister said Ghana’s ambition of increasing LPG utilisation and improving energy security can only be achieved through strong partnerships between government and responsible private-sector investors.

“We commend Sahara Group for standing shoulder-to-shoulder with Ghana over the years in supporting our aspirations for energy security, economic growth and sustainable development. The success of our energy transition journey depends on credible and committed partners.”

According to Wale Ajibade, Executive Director, Sahara Group, the vessel represents far more than an investment in maritime infrastructure.

Ajibade noted that Ghana’s target of increasing LPG adoption in 50 per cent of households by 2030, up from about 30 per cent today, makes investments in supply infrastructure increasingly important.

“At Sahara, we see MT Asharami Ghana as a symbol of confidence in Ghana’s future and the country’s growing role in regional energy trade. It reflects our unwavering belief in Ghana’s immense potential and our determination to work alongside stakeholders to deliver sustainable energy solutions that improve lives, create opportunities and drive inclusive growth.”

He added that the vessel is part of a broader, integrated infrastructure strategy combining shipping, storage, and downstream distribution to strengthen Ghana’s LPG value chain.

Yaa Serwaa Alifo, Managing Director, Asharami Ghana, described the vessel’s arrival as the culmination of a vision and a bold statement of the company’s commitment to Ghana’s energy future.

“What we are celebrating here is the culmination of a vision and a bold statement of our commitment to Ghana’s energy future. Asharami Ghana will help ensure that homes, businesses and families across Ghana have reliable access to cleaner cooking fuel,” she said.

Alifo acknowledged the support of the Government of Ghana, the Ministry of Energy and Green Transition, the National Petroleum Authority, Sahara Group’s leadership, and all stakeholders whose collaboration helped bring the project to fruition.

As demand for LPG continues to grow across the sub-region, investments in marine infrastructure such as MT Asharami Ghana will become increasingly important in ensuring security of supply, operational efficiency, and sustainable economic growth.

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Energy

NNPC Flaunts $800m Ima FID, as Affirmation of Upstream Viability

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The $800 million Final Investment Decision (FID) on the Ima Gas Project (IGP) has been described as a landmark development that affirms the growing viability of Nigeria’s upstream gas sector.

The Nigerian National Petroleum Company Limited (NNPC Ltd) flaunted the project, located offshore in OMLs 112 and 117 and developed by AMNI International in partnership with TotalEnergies, noting that it will produce about 300 million standard cubic feet of gas per day at peak.

It added that the output will supply critical feedgas to the Nigeria LNG Limited in support of its Train 7 expansion, which will increase capacity at the Bonny Island plant from 22 million tons per annum to 30 Mtpa.

READ ALSO: NMDPRA Poised to Curb Under-dispensing at Petrol Stations

This was detailed in a statement in which the state oil major stressed that the FID was enabled by the presidential directives of 2024, which provided fiscal incentives for non-associated gas, streamlined contracting and lowered development costs.

Group Chief Executive Officer, NNPC Ltd, Bayo Ojulari described it as “a decisive vote of confidence in Nigeria’s gas sector and in the bold reforms” that have created competitive terms and a predictable investment environment.

The NNPC Ltd also commended the collaboration between AMNI, TotalEnergies and the Nigerian financial sector, saying the model of indigenous operator, international partner and domestic capital is a template for future developments.

“NNPC reaffirms its commitment to work with government, regulators and industry partners to sustain investment momentum and deploy Nigeria’s gas resources for industrialisation, job creation and long-term prosperity,” the statement added.

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