…NNPC warns against panic buying, assures of adequate fuel supply
As the Federal Government implements its decade of gas agenda and embraces energy transition, stakeholders have argued that effective gas exploitation and domestic utilisation will depend on respect for sanctity of contracts and the regulatory environment.
According to them, gas remains the cheapest source of energy for manufacturers.
Besides, the Nigerian National Petroleum Corporation (NNPC) has assured Nigerians that there would be no fuel scarcity as speculated.
The Group Managing Director, NNPC, Mele Kyari, explained that presently, over 1.7 billion litres of Premium Motor Spirit (PMS) are available for consumption as another 2.3 billion litres are expected to be imported into the country in the coming weeks.
Kyari at the Association of Energy Correspondents (NAEC) 2021 strategic international yearly conference in Lagos, said plans are also ongoing to ensure the free flow of the commodity across the country.
He said the realities around energy transition in Africa is clearly a major challenge for the continent, saying that exploiting the available resources is a pathway to attain the net-zero objective by 2050.
“Once we create this transition which is anchored towards reducing the consumption of fossil fuel and its negative impact on the environment, we are making good progress in terms of the implementation of the Petroleum Industry Act (PIA) which is clearly creating the path for transition.
“There is no way we can achieve this feat without adequate infrastructure to transport the resources to where it will be used and that is why we are investing in a massive gas infrastructure,” he added.
According to him, the key objective of the COP is to get commitment from nations to reduce carbon footprints and achieve Net-Zero by 2050.
“The essence of why the whole world is gathered is to seek ways on how to reduce the carbon footprint while also saving the planet for future generations,” he said.
On his part, the Managing Director, Shell Nigeria Gas, Ed Ubong, said gas remains the cheapest energy source for local manufactures, noting that it is a major source of power that drives industrialisation and economic development.
He stated that the constant availability of gas plays a key role in stabilising and even stimulating growth in the manufacturing sector.
Citing the latest estimates from the NNPC, he said Nigeria has around 202 trillion cubic feet of proven gas reserves and about 600 trillion cubic feet of unproven reserves.
He highlighted that the federal government’s decade of gas mandate are hinged on the sanctity of existing contracts, predictable regulatory, commercial and legal framework across the country, and improved security and safety.
He also pointed out that effective utilisation of available gas and building of a resilient domestic gas industry would require partnerships between the Nigerian government and oil and gas companies that can innovate, that have capacity to deliver major projects, and willing to take on long-term commitments.
Also speaking, the Director, Monitoring and Evaluation Directorate, Nigerian Content Development and Monitoring Board (NCDMB), Akintunde Adelana, said the PIA is seeking to resolve the oil and gas industry challenges, saying that the passage of the PIA has opened a vista of opportunities for the country.
He also stated that the PIA would foster the development of critical infrastructure and aid the utilisation of gas resources for national development.
Earlier, the NAEC Chairman, Olu Phillips, said gas is not a new resource, but was merely treated as a waste product, of course with dire consequences.
He said at the global level, energy demand is set to grow by more than 30 per cent with the world population to grow by two billion by 2050.