Sylva mulls deployment of Gas Resources to Help Nigeria Fast-track Industrialisation Programme

The Minister of State, Petroleum Resources, Chief Timipre Sylva, has assured that gas will be deployed as Nigeria’s transition energy source to boost the country’s industrialisation programme.

Sylva made this assertion while speaking during a dinner with the diplomatic community in Abuja, adding that gas remains the only single energy source that can help Nigeria diversify the economy, as well as bridge it’s energy gap.

The minister posited that with a proven gas reserve of 206 TCF and a potential upside of up to 600 TCF, the country was deepening its natural gas utilisation under the National Gas Expansion Programme (NGEP) in order to reap the benefit of its gas resources.

According to the minister “Energy is the basic resource for national socio-economic development and it must be secured at all times. As a result of its rising impact on national security and economy, the need to safeguard energy and ensure availability, reliability and affordability has made energy diplomacy an essential part of every country’s foreign cooperation.”

Sylva disclosed that Nigeria has rolled out the auto-gas scheme with the aim of displacing the excessive use of petrol and is working towards reducing its use with Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG).

He noted that this will reduce petrol use and minimise carbon emissions.

He added that “It is important to stress that Nigeria’s vehicle of choice on the energy transition journey is natural gas. Much has been done towards harnessing this huge potential to provide the energy needed for our growing population in terms of power generation, transport, feedstock for industries and clean cooking solutions.

“It is disheartening that Nigeria is still energy-poor despite our enormous energy resources, which include over 200 TCF of proven natural gas reserve with a potential upside of up to 600 TCF.

“Majority of our people still lack access to reliable electricity and clean cooking fuels, and our pursuit is to significantly reduce this menace, with the hope of ending energy poverty in the country soonest.”

Sylva applauded the passage of the Petroleum Industry Act (PIA) 2021, describing it as a game changer for the oil and gas sector.

He explained that “The Nigerian energy industry has undergone positive reforms with the passage of the Petroleum Industry Act (PIA) 2021. The PIA 2021 has paved the way for new investment, created jobs, support economic and energy diversification and has placed Nigeria in a position of being able to not only meet our energy needs, but help support the world’s rising energy demands.

“The Act has generous incentives to encourage the development, distribution, penetration, and utilisation of gas – as it incentivises entry into the midstream, especially for investment in gas pipelines.”

The minister charged the international community to support Nigeria’s effort at maximising its resources in the face of global energy transition plans.

“It is important that we continue to talk, listen to each other and craft pathways that are mutually beneficial in the area of energy security.

“I would therefore like to invite you all to support Nigeria’s call for partnership and investment in our energy industry in the true spirit of cooperation,” he added.

Sylva reiterated that Nigeria will continue to use the Nigeria International Energy Summit (NIES) to accelerate global energy transition agenda as it continues to promote energy efficiency and renewable technologies.

He stated further that it is also fast becoming a platform for showcasing engineering and technological breakthroughs in the energy sector.

The minister commended the ambassadors for the work they have put in to sustain Nigeria’s relationship with their various countries.

The Dean of the Diplomatic Corps, Mr Salaheddine Abbas Ibrahima who doubles as the Cameroonian envoy to Nigeria, in his remarks, highlighted the importance of the energy industry globally, adding that for years, the kind of initiative had not happened in years.

Ibrahima hinted that the NIES remains an international event which is attended globally and called for continued cooperation as the programme draws closer.

Others speakers at the event included the Chairman of the Independent Petroleum Producers Group (IPPG) Abdulrasaq Isa, the Chairman Petroleum Technology Association of Nigeria (PETAN), Nik Odinuwe, Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Simbi Wabote, among others.