The Nigerian National Petroleum Company Limited (NNPCL) is facing significant challenges in funding its domestic gas projects, largely due to insufficient financial resources that are being leveraged by international oil companies. These companies primarily focus on gas exportation rather than local project development. The Group Chief Executive Officer of NNPCL, Mele Kyari, highlighted these concerns during a Strategic Panel Session at the Abu Dhabi International Petroleum Exhibition & Conference. The focus of this year’s theme, “Connecting Minds Transforming Energy,” emphasizes the ongoing global dialogue on accelerating energy innovation and collaboration.
Kyari pointed out that Nigeria possesses vast gas reserves, estimated at around 209 trillion cubic feet. Despite this wealth of resources, he lamented that the lack of accessible capital for gas project funding remains a critical barrier. International Oil Companies dominate the financial landscape, and their balance sheets often dictate funding opportunities that are skewed toward gas exports rather than domestic enhancement. He stressed the urgent need for global financial strategies that support energy-deprived countries, allowing them to address their unique challenges in energy development and sustainability.
The NNPCL also underscored the need for enhanced collaboration and transparency in the global energy sector to address carbon emissions effectively. According to Kyari, achieving net-zero by 2050 requires unified efforts that encourage cooperation rather than criticism of lagging nations. This approach aims to bridge existing gaps in capabilities and resources among different stakeholders in the energy sector, fostering a more inclusive environment for all parties involved.
Africa, particularly Nigeria, grapples with the dual challenges of decarbonization and energy poverty. In response, the Nigerian government has implemented two significant policy shifts: the declaration of a “decade of gas” as a transition fuel and the removal of fuel subsidies. These policies are intended to promote a shift from a diesel and fuel-driven economy to one that is primarily gas-driven, aiding Nigeria’s broader decarbonization strategies. Kyari reiterated the importance of these policies in aligning with the nation’s commitment to mitigating climate change.
Additionally, NNPC Ltd is a signatory to the Oil & Gas Decarbonisation Charter, which sets ambitious goals such as achieving gas flare-out by 2030. This initiative focuses on harnessing gas for automotive and power generation, reducing reliance on flaring, and contributing to lower carbon emissions. Kyari emphasized the importance of recognizing the different circumstances faced by various countries and the necessity of creating equitable opportunities in decarbonization efforts. He cautioned against homogenizing all nations under the same expectations, advocating for tailored support based on individual capacities.
Kyari praised the phenomenal collaboration emerging within the energy sector, citing TotalEnergies as a prime example of effective partnership through cutting-edge methane measurement and detection technologies. The Abu Dhabi International Petroleum Exhibition & Conference (ADIPEC) serves as a crucial platform for showcasing such collaborations, bringing together over 180,000 professionals from the energy industry to foster dialogue and innovative solutions. The collective focus on navigating the complexities of energy transition and decarbonization underscores the critical need to advance not only technological solutions but also financial and regulatory frameworks that support energy equity and sustainability.
