April 16, 2024

FID on Nigeria-Morocco Gas Pipeline project will actualise in December – Kyari

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The Group Chief Executive Officer, GCEO, of the Nigerian National Petroleum Company Limited, NNPC, Mr. Mele Kyari, has disclosed that current and ongoing discussions on the Nigeria-Morocco Gas Pipeline Project, NMGP, has moved to a closing stage, adding that Final Investment Decision, FID, on the $25 billion project would be taken in December this year.

Kyari, who spoke at a leadership dialogue session at the ongoing CERAWeek Conference in Houston, United States on Tuesday, advocated a differentiated approach to attaining energy transition for the African continent.

He said the idea behind the NMGP is to create a pipeline that will pass through thirteen African countries, all the way to Europe, adding that, as the largest oil and gas company and corporate entity in Africa, the NNPC is critical to Nigeria’s resource management and economic development.

The NNPC GCEO, who also spoke on the growing calls for transition to cleaner energy fuels, advocated a differentiated approach to attaining energy transition for Africa.

According to him, 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.

He stated: “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% of the population don’t have access to clean cooking fuels. Therefore, you must fill the supply gap first,”

Kyari said although people talk about using renewables to close the energy transition gap, the money for the renewables too must 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% of the entire global emissions,” he added.

He said that as at today, the NNPC’s focus is to build its capacity to deliver gas to the domestic market and beyond and that as a gas-endowed country, Nigeria must utilise 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 trunklines 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, the NNPC is critical to Nigeria’s resource management and economic development.

He observed that the Petroleum Industry Act 2021 has reformed Nigeria’s oil and gas industry, by ensuring that the NNPC 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 can 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.

Organised 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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