The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says Nigeria may face a gas supply crisis in 2030, as demand for gas is expected to grow at a compound annual growth rate of 16.6 per cent per annum between 2020 and 2030.
Chief Executive Officer of NUPRC, Gbenga Komolafe, stated this in an address titled: ‘Gas as Energy Transition Fuel: Navigating Nigeria’s Trilemma of Finance, Energy Security, and International Politics’, and delivered to the energy conference holding in Lagos.
According to him: “And Nigeria may face an impending gas supply crisis with a potential shortfall of 3.1 billion cubic feet per day by 2030 in the ‘Base Case Demand and Supply’ scenario,” he stated.
He noted that the post-Paris Agreement era had witnessed a growing recognition of the urgency to combat climate change, as a result of which more countries and entities are establishing carbon neutrality targets, which in turn have resulted in a global shift towards a more sustainable and low-carbon energy landscape.
Komolafe noted that this has also brought about a decline in oil and gas investment as investors and financiers face mounting pressure from various fronts.
He pointed out that the blueprint for various pathways to energy transition aligns perfectly with NUPRC’s national stance on “just transition.”
“The new dynamics in the global energy arena necessitate that Nigeria, a country long dependent on the exploitation of oil and gas as the mainstay of its economy, re-examine its strategy to secure a blossoming energy future while meeting the global climate goals.
“The future we envisage for the petroleum industry should assure for the utilisation of Nigeria’s endowed natural hydrocarbon resources for shared prosperity, energy accessibility, affordability, sustainability, security as well as energy independence and energy sovereignty which are the cardinal pillars of the Nigeria Energy Transition Plan,” he stated.
Komolafe recalled that the government had declared natural gas as the immediate transition fuel because it provides a cleaner alternative to oil and coal, emitting significantly fewer greenhouse gases while maintaining the reliability needed to power industries and homes.
