NNPC To Take FID On $25bn Nigeria-Morocco Gas Pipeline In December 2024
Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company Limited (NNPCL), Mr. Mele Kyari, yesterday said the Final Investment Decision (FID) on the Nigeria-Morocco Gas Pipeline (NMGP) Project will be taken in December 2024.
Kyari also advocated a differentiated approach to attaining energy transition for the African continent.
He spoke during a leadership dialogue session at the ongoing CERAWeek Conference in Houston, United States.
According to the GCEO, energy transition is a very difficult subject for countries, especially in sub-Saharan Africa, because geographically, the situations are different. He stated that a number of the countries were dealing with energy availability, not transition, and energy availability was closely linked to energy security.
Kyari said, “The world has seen all the challenges thrown up recently by geopolitical events. It is clear that before energy transition, countries must first attain security of energy supply in their countries.
“You cannot talk about energy security when it is not even available. In most sub-Saharan Africa, 70 per cent of the population don’t have access to clean cooking fuels. Therefore, you must fill the supply gap first.”
A statement by NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, quoted Kyari as saying that although people talked about using the renewables to close the energy transition gap, the money for the renewables, too, must be found.
Kyari stated, “If you insist on completing substitution today, then you have to deal with the problem of supply. For us, today, the transition must be differentiated. Even if Africa decides to switch off its fossil fuels, it only accounts for just about three per cent of the entire global emissions.”
He said, currently, NNPC’s focus was to build its capacity to deliver gas to the domestic market and beyond, stressing that as a gas-endowed country, Nigeria must utilise its abundant gas resources to provide the alternative fuel that it needs.
Kyari said, “We understand the arguments towards attaining energy transition, but the cheapest way to achieve that is through gas. We see clear opportunities that gas creates. Today, we are building a number of trunk lines and other gas infrastructure that will supply gas to a number of gas networks.”
The GCEO said there was an ongoing engagement on the Nigeria-Morocco Gas Pipeline Project (NMGP), presently at an advanced stage, to create a pipeline that will pass through 13 African countries and all the way to Europe.
He stated that as the largest oil and gas company and corporate entity in Africa, NNPCL was critical to Nigeria’s resource management and economic development.
He said the Petroleum Industry Act (PIA) 2021 had reformed Nigeria’s oil and gas industry by ensuring that the NNPCL emerged as a fully commercial entity that was not only accountable and responsible to its shareholders, but also one that was on the pathway to getting quoted on the stock exchange.
Kyari said Nigeria was fighting the menace of crude oil theft frontally and through the joint efforts of government and private security agencies, and there had been some reasonable improvement in the restoration of the country’s crude oil production.
He stated, “It is an abnormal situation, but it is well within control. We were able to recover some of our production and build back confidence so that investors can bring in their money. We are also doing global advocacy to governments and institutions, because stolen oil has to be taken to the market.”
He said an example of the improved security situation was when in 2022, Nigeria’s production fell below one million barrels per day, which was restored to 1.7 million barrels per day.
CERAWeek is organised by S&P Global and the conference has grown in recent years to accommodate new energy technologies and climate issues.
The 2024 conference is expected to have participants from over 90 countries and will feature 1,400 speakers.
Source: thisdaylive.com
