From Adewale Sanyaolu, Houston, Texas

The Nigerian National Petroleum Corporation Limited (NNPC) says the Federal Government has chosen gas as the transition fuel in order to bridge the energy gap to create economic development.

NNPC Board Chairman, Mrs Margrey Chuba- Okadigbo stated this in her remarks at the Offshore Technology Conference (OTC) Petroleum Technology Association of Nigeria (PETAN) organized session on Nigerian Energy and Supportive Industries in Houston, Texas.

Okadigbo maintained that the energy industry is facing increasing demand to clarify the implication of energy transition for their operations and business models and to explain the contributions they can make to reducing green house gas , emissions and to achieving the goals and commitment of Paris accord and  the COP 26.

She said these increasing social and environmental pressures on many energy companies raise complex questions about the role of oil and gas in a changing energy economy and the positions of these companies in the societies in which they operate

She said as the world transits to substituting fossil fuel to other forms of cleaner energy, Nigeria is still faced with numerous challenges in ensuring energy security, deepening domestic gas utilization and maximizing revenues derivable from hydrocarbon resources.

She explained that as world leaders and business leaders join in the global solidarity against climate change and reduction of carbon emissions, NNPC Limited is taking giant strides in lowering her carbon footprints, sustaining energy security and driving prosperity in Nigeria.

‘’We believe that achieving and sustaining a carbon neutral economy requires inclusive policy actions that guarantees access to finance and low carbon technology.

Recently, Nigerian witnessed the enactment of the Petroleum Industry Act (PIA) 2012 which guarantees a reasonable return on investment , promotes business and operational transparency and proffers better fiscal regimes than it was in the past.

In effect, this Act provides the legal framework and guarantees investors confidence. Therefore it is expected that much more significant change in overall capital allocation would be required to accelerate energy transition, especially in getting some key capital intensives, clean energy  technologies to reach maturity’’.

Earlier in his remarks, Chairman of PETAN, Mr. Nicholas Odinuwe, said the theme of the workshop ‘’Energy Transition and the Future of Africa’’ with Africa said to the the last energy frontier and global hub is apt as there is a global energy revolution   and the quest for alternative and cleaner sources of energy.

However, he said developing countries are keeping an open mind in the choices of their energy mix as they take cognizance of what best works for their heterogeneous populations.

According to him, energy access is critical, so is funding and so, to fulfill the needs of this industry and secure future investment and energy security in Africa, our emphasis should be on collaboration, entrepreneurship, innovation, and funding.

He reminded the gathering that many African countries, companies, and individuals have made huge investments in the energy sector and the economy of many African countries depends largely on stakeholders.

‘’It is expedient that the region begins to examine these critical issues and proffer solution on how to properly position the sector for maximum economic transformation’’.

 

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Source: news