Developing nations like Nigeria will need huge investments in infrastructural development to drive their energy transition in an efficient and equitable way, the managing director and chief executive officer of Nigeria LNG, Dr Philip Mshelbila, has said.
Mshelbila stated this while speaking at a global leadership panel on Energy Inclusion: Widening access to natural gas and LNG to support the transition to a lower-carbon energy system in emerging economics at the George R. Brown Convention Centre, Houston, Texas, USA.
This was contained in a statement made available to the Nigerian Tribune on Friday in Lagos.
Giving insight into the understanding of the opportunities and challenges associated with the widening access to cleaner energy in high-growth markets, Mshelbila pointed out that the dearth of quality infrastructure like insufficient pipelines, storage, and regasification facilities, high costs of importing LNG, and energy poverty like limited access to affordable energy are key issues that must be addressed.
He affirmed that by addressing these challenges and leveraging on solutions, emerging economies would be able to widen access to natural gas and LNG, supporting a lower-carbon energy transition and energy inclusion.
Speaking about Nigeria and other developing economies, he urged global energy policymakers to create energy equity and inclusion to ensure that the average African woman’s daily energy needs are met.
He cautioned that there were consequences for energy exclusion and that the concept of energy inclusion was key to meeting climate energy goals.
On growing population and energy needs, he said: ‘’Nigeria’s population is estimated to be around 200 million, and by 2050, it is estimated to grow to about 250 million, and most of them are young people who will need one form of energy, in one way or another. So, it is expedient to have various energy mixes to cater for this growing population.”
He noted that the Nigerian government is doing all it can to meet the energy needs of its growing population, using natural gas as its transition fuel.
He stressed that in 2020, the government launched the Decade of Gas and NLNG was solidly behind it and still playing a huge role in the initiative.
As of today, he disclosed that NLNG supplies almost 40 per cent of Nigeria’s LPG demand in-country, delivering over 400,000 metric tonnes.
‘’Our company’s focus on the domestic market solidifies its reputation as a top-tier global player. Also, by channelling the LPG, we are invariably displacing Charcoal and wood burning, which release pollutants that cause about 1.6 million premature deaths annually, he said
He also posited that Nigeria and other developing nations need energy to move forward in their industrialisation agendas, and natural gas will play a vital role in it. He called on producing nations to see how they can maximise the natural gas in developing their nations.
He also noted that diversity, equity and inclusion are key cardinal issues that can help in fast-racking the progress of energy transition in developing economies.
Other stakeholders also highlighted the need for Infrastructure development in pipelines, LNG terminals, and storage facilities; Public-Private Partnerships (PPPs): Collaborative investments; Financing mechanisms: Green bonds, concessional loans, development of national energy plans, and good regulatory frameworks as action plans that can aid in equitable energy transition.
Other members of the panel include Alan Heng, group CEP Pavilion Energy, Singapore, Tze San Koh, President China gas marketing; ExxonMobil, Toshiro Kudama, Head of Asia Pacific Operation; JERA; and Lame Verre, Co-Founder & Chair Advisory Board; and Lean in Equity & Sustainability, who moderated the session.
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