NUPRC warns of potential gas supply crisis by 2030
The Nigerian Upstream Petroleum Regulatory Commission has expressed concern that Nigeria could face a gas supply crisis by 2030.According to The Punch, Gbenga Komolafe, Chief Executive of the NUPRC, issued this warning during the ongoing energy conference in Lagos.
According to Komolafe, petrol demand is expected to increase at a compound annual growth rate of 16.6% per year between 2020 and 2030.
"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," stated the minister.
Speaking at the conference titled 'Gas as an Energy Transition Fuel: Navigating Nigeria's Trilemma of Finance, Energy Security, and International Politics,' Komolafe emphasised that the post-Paris Agreement era has seen a growing recognition of the importance of addressing climate change.
As a result, he observed that more countries and organisations are establishing carbon neutrality goals, resulting in a global shift towards a more sustainable and low-carbon energy landscape.
He went on to say that this trend has resulted in a drop in oil and gas investments, as investors and financiers face mounting pressure from all sides.
Komolafe maintained that the blueprint for various pathways to energy transition is perfectly aligned with the NUPRC's national stance on "just transition".
"The agenda for Nigeria and other resource-rich developing economies is to balance evolving energy dynamics with geography, history, and politics, as well as the need for energy justice, equity, inclusivity, and sustainability.
"The new dynamics in the global energy arena necessitate that Nigeria, a country long reliant on oil and gas extraction as the backbone of its economy, reconsider its strategy to secure a thriving energy future while meeting 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 told journalists.
Komolafe recalled that the government has designated natural gas as the immediate transition fuel, emphasising its importance as a cleaner alternative to oil and coal.
He pointed out that natural gas emits significantly fewer greenhouse gases while providing the reliability required to power industries and homes.
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