The Group Chief Executive Officer of Nigerian National Petroleum Company Limited (NNPC) Ltd. Mele Kyari has revealed that the Final Investment Decision (FID) on the $25 billion Nigeria-Morocco Gas Pipeline (NMGP) project will be taken in December 2024.
Kyari made the revelation on the Nigeria-Morocco while speaking during a Leadership Dialogue Session at the ongoing CERAWeek Conference in Houston, United States on Tuesday.
According to him, Nigeria-Morocco which is at an advanced stage, will create a pipeline that will pass through thirteen African countries to Europe, adding that the FID for the $25 billion pipeline project will be taken by December.
The NNPC Limited’s GCEO also advocated for a differentiated approach to attaining energy transition for the African continent.
He argued that 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 sub-Saharan Africa, 70 per cent of the population doesn’t have access to clean cooking fuels. Therefore, you must fill the supply gap first,” the GCEO stated.
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He said although people talk about using renewable to close the energy transition gap, the funds for renewable must also 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 percent of the entire global emissions,” the GCEO added.
He said today, that NNPC Ltd’s focus is to build its capacity to deliver gas to the domestic market and beyond.
He said as a gas-endowed country, Nigeria must utilize 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 several trunk lines and other gas infrastructure that will supply gas to several gas networks,” Kyari noted.
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) 202, has reformed Nigeria’s oil and gas industry, by ensuring that the 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 of getting quoted on the stock exchange.
Kyari said Nigeria is fighting the menace of crude oil theft frontally, and through the joint efforts of 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 to 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.
Organized 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.
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