Nigeria LNG Limited claimed yesterday that by monetizing more than 60% of gas vented through its various trains, Nigeria was already on the right track to fulfilling its energy transition ambitions.
The company claims that switching away from dirty fuels and reducing flares are positive steps in the right direction, and that energy transition does not have to be a significant leap.
The managing director of NLNG, Philip Mshelbia, stated that in a nation with a significant energy deficit, lowering carbon footprints begins with providing cleaner alternative energy sources for a population that depends on filthy fuels.
According to him, Nigeria’s success in monetizing associated gas has contributed to a decrease in flare-ups, thought leadership on the decade of gas agenda, and the generation of funds for investment in vital infrastructure to enhance the welfare of the populace.
Speaking on the sidelines of the current GASTECH conference and exhibition in Milan, Italy, Mshelbia added that the company was equally committed to supplying 100% of its liquefied petroleum gas (LPG) production to the domestic market in order to support the growth of LPG use in the nation and help lower the health, safety, and environmental risks associated with the use of other domestic fuel sources.
Speaking on “Concerted industry action on ending energy poverty,” he added that NLNG prioritized the supply of clean energy in Nigeria through the provision of LPG and worked in partnership with the government to increase LPG consumption in Nigeria as a part of the country’s transition to a future powered by clean energy.
“We also expanded our capability in running our plants to generate electricity. We generate over 300MW of electricity to power our community on the Island from where we operate,” he added.
Timipre Sylva, the Minister of State for Petroleum Resources, has stated that Nigeria is preparing to take the lead as a major gas supplier to Europe in the wake of the continuing energy crisis in the world brought on by the conflict in Russia and Ukraine.
The minister argued that support for gas production at this juncture was advantageous for both Europe and Africa during a panel discussion on the subject of “Just Energy Transition for Developing Nations.”
“Today we are seeing gas being weaponised and every country will at least require some alternative supply.
“We believe that Europe needs this gas and it is a win-win for all of us and it is in their interest to reduce this discriminatory investment that their banks are doing.”
Despite the current global energy crisis, Simbi Wabote, Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), believes that there are still a lot of unexplored investment potential for Africa, particularly in the LNG-to-lower sector.
“NLNG exports our gas, and they claimed that the gas they produce is available to all markets, including the LPG market,” he stated. We haven’t put enough money into using LNG as a source of energy.
“The discussions have always been around investing in power plants that use natural gas, not liquefied natural gas. The potential for LNG to power is huge. In the event that those investments exist and NLNG detects takers, they would sell. The business is to sell the LNG that is produced and not to keep them.
“Currently we have not explored the possibility which does exist in procuring LNG for power generation. Today, the only thing we off-take from NLNG is LPG, which is also part of the by-products. Most of the domestic LPG is produced by NLNG today; that informs their commitment to the domestic market. If there are investments in power plants that will utilize LNG for power, they would sell.”
He then added that “There is energy poverty and we need to harness what we have to be able to provide to the people. A democratically elected government has to listen to its people’s needs and tackle the challenges. And if you have the resources to provide that energy, the best thing to do is to invest in the resources to make energy affordable and accessible to the people.”
