The Group Managing Director of Rainoil Limited, Dr. Gabriel Ogbechie has reiterated the need for the federal government and other stakeholders in the energy industry to invest heavily in gas infrastructure so as to build a resilient energy system that will guarantee national energy security.
According to him, scaling up the cleaner energy initiatives will attract domestic and international investors.
Dr. Ogbechie stated this while delivering his address as Conference Chairman at the just concluded 2024 NAEC annual strategic international conference in Lagos.
The theme of the conference was, “Gas as Energy Transition Fuel: Navigating Nigeria’s Trilemma of Finance, Energy Security, and International Politics.”
While stressing the need for adequate security of the country’s oil and gas transport networks (the pipelines), he said transitioning to a gas-powered economy would certainly require significant capital investments, recalling the Nigeria’s Extractive Industries Transparency Initiative (NEITI) Report of 2023 which disclosed that Nigeria would require approximately $20 billion annually to bridge its gas infrastructure gap.
He noted that from pipelines to processing plants, the infrastructure demands are immense, and financing this transition poses real challenges. Nigeria’s current economy, marked by inflationary pressures, fluctuating oil prices, and currency volatility, makes financing even more challenging.
Emphasizing the benefits of CNG and LPG, the Rainoil Boss said: “Compressed Natural Gas (CNG) will play a crucial role in transportation, with significant projects already underway in the FCT, Lagos, Ogun, and Edo states.
“Meanwhile, LPG initiatives are revolutionizing household energy use, with millions of households transitioning from kerosene and firewood to cleaner, more efficient LPG cooking fuels under the National LPG Expansion Implementation Plan.
And gas as a bridge fuel for Nigeria’s energy transition, Rainoil Chief said that natural gas has come to stay as the most viable transition fuel for Nigeria. “Its cleaner-burning properties make it a strategic alternative to more carbon-intensive fuels like coal and oil. Our vast reserves of over 200 trillion cubic feet put us in a position to leverage gas for both domestic consumption and export.’’ he said.
Ogbechie further called for the strengthening of policy frameworks to support the scaling of CNG and LPG initiatives for both transportation and domestic use.
He expressed hope in Nigeria’s energy transition to gas and advised stakeholders to ensure that the nation’s gas strategy aligns with global energy transition goals while protecting its geopolitical and economic interests.
“The global energy transition will require us to move quickly, to adapt to new technologies, and to respond to changing international policies. But I believe that Nigeria is well-positioned to succeed. We have the resources, we have the talent, and we have the will.
“By prioritizing investments in gas infrastructure, fostering public-private partnerships, and positioning ourselves strategically in the global market, we can secure Nigeria’s energy future while contributing to global efforts to combat climate change,” Dr. Ogbechie stated.
He applauded members of the Association for organizing the conference, saying that ‘’it is an honour and a privilege to Chair the 2024 edition of the Association of Energy Correspondents of Nigeria (NAEC) Annual Conference. This platform has consistently provided a vital space for robust discussions on issues critical to the future of Nigeria’s energy sector, and today’s theme “Gas as Energy Transition Fuel: Navigating Nigeria’s Trilemma of Finance, Energy Security, and International Politics” is no exception, he stated.