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NUPRC outlines cardinal areas for sustainable gas utilisation, devt

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says it has identified four cardinal areas for sustainable gas development and utilisation in the country.

The focus areas include gas reserves growth, optimised gas production, domestic gas utilisation and gas flare elimination.

The Commission Chief Executive, NUPRC, Gbenga Komolafe, disclosed this yesterday at the 2022 Society of Petroleum Engineers (SPE) Nigeria Annual International Conference and Exhibition (NAICE), in Lagos.

The conference, which opened Monday, is themed: “Global Transition to Renewable and Sustainable Energy and the Future of Oil and Gas in Africa.”

Komolafe, represented by Head, National Oil and Gas Excellence Centre (NOGEC), Abel Nsa, urged other African countries to adopt suitable anchor points and roadmaps similar to what had been outlined by the Commission.

This, he said, will enable them to achieve the right energy mix while decarbonising their oil and gas development.

He noted that Nigeria had huge abundant gas resources, which had been adopted by the country as its energy transition fuel, adding that the passage of the Petroleum Industry Act (PIA) 2021 aims to eliminate bottlenecks in the oil and gas sector to attract more investments.

He said: “We are positioning gas as our transition fuel while adopting a phased down approach in our energy transition quest geared toward paying greater attention to the development of untapped gas resources.

“This energy source with a low carbon footprint would serve as the transition fuel in meeting our energy security as a nation.

“Fortunately, several African countries including Nigeria, Algeria, Mozambique, Egypt and Libya, among others are blessed with huge gas reserves.

“With a total of over 620 trillion cubic feet of natural gas reserves and 125.3 billion barrels of crude oil, the future of upstream oil and gas in Africa is promising.”

Komolafe, however, noted that it required the right legislative framework and a change in policy direction for maximum economic recovery and energy sustenance.

He added that the PIA had generous fiscal provisions aimed at attracting investment not just for oil development but for harnessing Nigeria’s rich gas potential which is among the highest in the world.

With a total of over 620 trillion cubic feet of natural gas reserves and 125.3 billion barrels of crude oil, the future of upstream oil and gas in Africa is promising.

Urgency of transition

Also, the Chairman, SPE Nigeria Council, Prof. Olalekan Olafuyi, said the world was facing challenges of balancing the urgency of transition to cleaner fuel with attendant deficit and economic challenges experienced in recent times.

Olafuyi said: “It is expected that the adaptive strategies for energy transition should be adopted in Africa. The status quo in the African energy supply is very obvious.

“Africa and Nigeria in particular, are still struggling with endemic energy poverty as compared to the developed regions of the world.”

He said this was further worsened by the divestment by major international operators and funding challenges for oil and gas businesses.

“This leaves the indigenous stakeholder in a situation of choosing to continue with the oil and gas business or channelling the attention to renewable energy sources.

“This question is in the mind-set of stakeholders in the energy business and policy space is the main reason we are here at this conference,” Olafuyi said. (NAN)

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