PRESS RELEASE
…Says FID on Nigeria-Morocco Gas Pipeline to be taken in December
As global calls for transition to cleaner energy fuels continue to grow, the Group Chief Executive Officer of Nigerian National Petroleum Company Limited (NNPC) Ltd., Mr. Mele Kyari, has advocated for a differentiated approach to attaining energy transition for the African continent.
Kyari, who also said the Final Investment Decision (FID) on the Nigeria-Morocco Gas Pipeline (NMGP) Project will be taken in December 2024, made the call while speaking during a Leadership Dialogue Session at the ongoing CERAWeek Conference in Houston, United States, on Tuesday.
According to the GCEO, energy transition is a very difficult subject for countries, especially in sub-Saharan Africa because geographically, the situations are different as a number of the countries are dealing with energy availability, not transition, and energy availability is closely linked to energy security.
“The world has seen all the challenges thrown up recently by geopolitical events. It is clear that before the 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 of sub-Saharan Africa, 70% of the population doesn’t have access to clean cooking fuels. Therefore, you must fill the supply gap first,” the GCEO stated.
He said that although people talk about using the renewables to close the energy transition gap, the money for the renewables too must be found.
“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 3% of the entire global emissions,” the GCEO added.
He said today, NNPC Ltd.’s focus is to build its capacity to deliver gas to the domestic market and beyond.
He said that as a gas-endowed country, Nigeria must utilise its abundant gas resources to provide the alternative fuel that it needs.
“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 trunklines and other gas infrastructure that will supply gas to a number of gas networks,” Kyari noted.
The GCEO said there is an ongoing engagement on the Nigeria-Morocco Gas Pipeline Project (NMGP), which is at an advanced stage, to create a pipeline that will pass through thirteen African countries and all the way to Europe.
He hinted that the Final Investment Decision (FID) for the $25bn Nigeria-Morocco Gas Pipeline (NMGP) Project will be made by December 2024.
He stated that, as the largest oil and gas company and corporate entity in Africa, NNPC Ltd. is critical to Nigeria’s resource management and economic development.
He observed that the Petroleum Industry Act (PIA) 2021 has reformed Nigeria’s oil and gas industry, by ensuring that NNPC Ltd. emerged as a fully commercial entity that is not only accountable and responsible to its shareholders but also one that is on the pathway to getting quoted on the stock exchange.
Kyari said Nigeria is fighting the menace of crude oil theft frontally, and through the joint efforts of the government and private security agencies, there have been some reasonable improvements in the restoration of the nation’s crude oil production.
“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 could bring in their money. We are also doing global advocacy for governments and institutions because stolen oil has to be taken to the market,” he stated.
He said an example of the improved security situation was when, in 2022, Nigeria’s production fell below 1 million barrels per day, which was restored to 1.7 million barrels per day.
CERAWeek is one of the largest energy conferences in the world, drawing thousands of foremost global energy industry experts and a host of other corporate and government leaders from around the world annually to Houston, United States, for a week-long conversation on the future of energy.
Organised by S&P Global, 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.
Under the theme “Multidimensional Energy Transition: Markets, Climate, Technology and Geopolitics,” the CERAWeek 2024 will explore “strategies for a multidimensional, multispeed and multifuel energy transition,” as the global energy industry tries to respond to, and offer insight into the roadmap towards, growing demand for emissions reductions and moving towards cleaner forms of energy.
Olufemi Soneye
Chief Corporate Communications Officer
NNPC Ltd
Abuja.
19 March 2024