Gas can lift Africa out of poverty __Farouk Ahmed

Sopuruchi Onwuka

Inability of Nigeria and other African countries to harness its huge gas resources into abundant energy is responsible for acute poverty in the continent, the Authority Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Engr Farouk Ahmed has declared.

Engr Ahmed delivered an industry regulator’s goodwill message and remarks at the ongoing 46th Annual International Conference Exhibition (NAICE) by the Nigerian Council of Society Of Petroleum Engineers (SPE) in Lagos.

“Energy is the most critical enabler and driver required to develop, sustain, and grow national, regional, and global economic activities in its entire spectrum and will continue to be a major subject of strategic reviews at all levels of government, conferences such as this and organized private sector undertaking,” he told the conference delegates.

In linking lack of energy access to acute poverty, Engr Ahmed stated that Africa still grapples with energy poverty and security even in the face of global energy transition and rising demand. He made it clear that about 60% of the people in the continent lacks access to energy and clean cooking fuel.

In pointing at the opportunity for the continent to rescue itself from energy supply gaps and related economic woes, Ahmed declared that “Africa has abundant natural gas reserves estimated at between 620 Tcf (Statista, 2022), and is becoming the dominant energy source according to the Gas Exporting Countries Forum (GECF).

“Nigeria’s proven gas reserves is currently estimated to be about 206 TCF. This has the potential to unlock economic development and GDP growth for the country,” buttressed.

In pointing out the role of natural gas as transition fuel, he noted that the resource “clearly offers a strategic competitive advantage to powering our continent sustainably through the creation of energy access for all in the short to medium term.”

He made it clear that the global rave for energy transition has made it urgent for the African governments to deploy gas in achieving the twin ambition of closing energy supply gaps and also driving decarbonisation goals.

“Mllions of people in sub-Saharan Africa still live or are living without access to electricity while some only have access to very limited or unreliable electricity. This is amidst old and insufficient infrastructure, growing energy demand with few energy sources, a vibrant young population and the list goes on.

“Economic prosperity is deeply dependent on energy access and consumption and as most of us know, this is the challenge for most countries in Africa.

“Currently, environmental sustainability is majorly driving the energy transition, but transition to a decarbonised system can only be successful if it simultaneously provides access to affordable energy, facilitates economic growth and development along with environmental sustainability,” he argued. 

He called on policy makers and players in the industry to think of resolving Africa’s poverty stalemate by making energy accessible to all, affordable and available in an optimally sustainable manner.

He pointed out that government has rolled out a number of policy measures to facilitate delivery of energy to the people through various industry incentives designed to make natural gas abundant for mass consumption.

“The Federal Government has declared year 2020 as the Year of Gas and the years 2021 – 2030 as the Decade of Gas. These pronouncements heralded the implementation of several midstream gas investment initiatives such as The Nigerian Gas Expansion Programme and The Nigerian Gas Transportation Network Code. The Petroleum Industry Act (PIA) 2021 enunciates the importance of the midstream sector of the oil and gas industry as a critical tool and strategic driver for actualizing our energy sustainability through gas development and utilization, creation of jobs and diversification of the economy.

“The NMDPRA is galvanizing this sector by addressing the trilemma of energy accessibility, affordability and sustainability by unlocking the full potential of natural gas which is the cleanest fossil fuel so far and has multiplier effects on all sectors of the economy, from agriculture, manufacturing, power, petrochemicals, etc.

“Natural gas has been incorporated in several policy documents such as the National Development Plan, Nationally Determined Contributions, Energy Transition Plan, etc, all stressing the importance of natural gas in the decarbonisation journey. 

“Of recent we established the Decade of Gas Secretariat, at our Abuja office, which is tasked to develop an aligned plan involving key stakeholders in the public and private sectors to unlock Nigeria’s abundant gas reserves over the next 10 years.

“The Nigeria-Morocco Gas Pipeline and Tran-Saharan Gas Pipeline are key midstream gas projects that when completed will place Nigeria as a major gas exporter to West Africa and Europe and build stronger ties between Nigeria, West Africa and Europe,” he listed.

Engr Ahmed also pointed at the Midstream and Downstream Gas Infrastructure Fund (MDGIF) under his custody for de-risking investments in the midstream and downstream gas value chain.

The MDGIF, he said, is to cater for the gap in gas infrastructure in many parts of the country and encourage local participation in gas-based industrialization aimed at deepening domestic gas utilisation.

“Furthermore, the Authority has emplaced relevant regulatory frameworks (Regulations and Guidelines) for project monitoring to ensure emission reduction and decarbonization strategies are embedded into all projects from conceptualization in alignment to Government’s commitment to a carbon-neutrality by 2060, Fugitive/Greenhouse gases (GHG) reduction by 2031 and, in the same vein eliminating gas flaring by 2030. We are also actively exploring and facilitating technologies that enable cleaner processing of fossil fuels for mandatory adoption industry wide.

“As the energy transition evolves, there is an opportunity to accelerate development across the gas value chain, providing a low-carbon bridge to a future of sustainable energy,” he told conference delegates.