The Nigerian National Petroleum Corporation, NNPC has reiterated its commitment to building the Oil and Gas sector, identifying Gas as a viable solution to the energy challenges in the country.
In a speech by the Group Managing Director NNPC, Mele Kyari, at the ongoing 2022 Nigerian Oil and Gas Conference, the NNPC emphasized the need to build more Gas, not only to take care of the energy needs of the country, but also for export to foreign markets which bring about huge financial benefits to the Industry.
Mr. Kyari noted that the growing needs for new energy forms and renewables means that the sector needs to be funded adequately. He said, “We are getting the Realities of Today which is New forms of Energy, the renewables in all its forms, it’s growing, its building. How can we get money to fund this industry in the manner that we can make money From it?
“The world needs to speak to each other and We are engaging with our partners, that in Realities, we must be supported, and that support should come in two ways, one is to accept, as the world has already done, that Gas should be the transmission fuel of choice and that is the reality.”
He added that with our Gas Potentials, that Nigeria should be the Number one Gas producer in the world, while pointing our various challenges which has hampered the growth of these numbers, with insecurity and lack of investments as major challenges facing the industry.
“We are number three gas producer in the world, we shouldn’t be number three, we should be number one, because Number one in assets and reserves should also be number one producer. We are also number one Oil reserve in Africa, we should be the number one producer of Oil, but for our challenges which some of my colleagues have pointed out.
“There are many conversations and engagements going on, support from security agencies the leadership by the Hon Ministry of State, is giving out to make sure we address this issues around security.
“We have seen clear national decline that is happening around us today and this is real and when decline comes and you are not ready to put money to put it back, except NNPC and few other partners. If you don’t invest and decline continues, you are not only going to see the effects of theft and other lapses we are seeing today, you are also going to see collateral effects of lack of endorsements.
“Shortly before Covid-19, there was an obvious undersupply of in the market, we have come to the realization that our lack of investment 1 or 5 years before Covid-19 has started manifesting in the undersupply in the market. What we are trying to do around the world is do production and this is the time to set our financing strategies to make sure that companies speak to each other in the manner that ultimately we are able to put money where it is”. He said.
He pointed out the energy deficiencies we have in the country and the need to invest in the Gas Industry, as well as the desire of the NNPC to be the Partner of Choice which will lead the line in creating an enabling environment for the everyone.
“We have deficiency in energy, today 80 percent of our people do not have access to clear cooking Gas, 40 percent does not have access to consumer oil, 48 percent do not have access to Electricity and that gap is huge, you can’t fill it with the scape of investments we are doing in the renewable, it is no practical today.
“We need to put our resources together, be able to infrastructure that which is necessary, as we are already doing. As we do this, then those numbers will improve and more persons will have access to electricity.
“In our conversations with our partners we will continue to emphasize that the key role is to make sure that build Gas and make them available to us. You will agree with me that all of us in this room, we all need Gas, and latest engagements have shown that the money is tied to our Gas and this is the perfect opportunity for all of us to take in this industry that we can make the money of today and create the prosperity of today for our people.
“What is very fundamental is that NNPC is here to be the partner of choice, we will be the biggest capitalized company in Africa, we will be the partner that will be focused on the commercial value of every engagement that we do” He concluded.
