Oil and gas industry experts have revealed the roadmap to a more secured future for Nigeria's energy sector.
Speaking at the 2024 NBCC (Nigerian-British Chamber of Commerce) Energy Group event in Lagos last week, themed: "Securing Nigeria's Energy Future: The Way Forward," Managing Director, Shell Nigeria Gas, Mr Raph Gbobo, explained that securing Nigeria's energy future was about making strategic choices that would shape the trajectory of the nation for the days to come.
According to him, crude oil industry would stop growing and start to decelerate after 2030, adding that natural gas is the only fossil fuel expected to grow beyond 2030.
Gbobo said measures to drive energy security in the immediate term involves enforcing discipline and transparency in the gas transportation network operation and implementing gas balancing, while on the medium term, the energy sector must transition to cost reflective pricing, install and maintain the right meters, upgrade of existing transportation infrastructure, promote willing-buyer/willing-seller marketplace.
"In the long term, the Federal Government should support investment in gas infrastructure and offer fiscal incentives to incentivise distribution infrastructure investments.
"Natural gas with its abundant resources and lower carbon emission offers a powerful tool to navigate the energy sector transition. While we are focusing on natural gas, we must also continue to maximize value from our oil riches combined with a robust strategy for renewable energy, infrastructure development and technical innovation that we can build a resilient, sustainable and inclusive energy system that powers our nation growth.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
Earlier in his welcome speech, President of NBCC, Mr. Ray Atelly, said that the instability of the national grid was a significant blockage hindering economic growth and affecting quality of life, adding that the global shift towards sustainability underscores the urgency for Nigeria to diversify its energy sources, particularly towards renewables like solar, wind, and hydropower.
"The transition towards renewable energy sources is no longer a choice but a necessity. As we confront environmental challenges and endeavor to meet the energy needs of a growing population, this transition opens up a world of possibilities", he said.
Also speaking, Special Adviser to the President on Energy, Mrs. Olu Verheijen, said that efforts are in place to make the country's energy environment more attractive for investments.
She stated: "The government is ready to improve regulatory certainty to make Nigeria a top three destination for investments in oil and gas. There have been presidential directives to clarify the role of regulators to attract investment in upstream and midstream sectors and to focus on fiscal incentives to drive energy transition to gas among others.
"We have issued fiscal incentives and have attracted over $500 million and have started paying our gas debts. The President also launched an initiative to bridge the metering gap, we have grown our grid capacity by having a commercially viable value chain and designed targeted subsidies to protect the poor".
