Shell advocates optimisation of Nigeria’s energy resources to transition to renewables

The Country Chair of Shell Companies in Nigeria, Mr Osagie Okunbor, has called for a two-pronged strategy for the country’s energy transition programme.

He says his suggestion is necessitated by the need to respond to global call to reduce the exploitation of fossil fuels and production of Green House Gases.

“To tackle climate change, power generation, for example, must evolve to use a combination of more renewable sources of energy, as well as natural gas – the cleanest-burning of hydrocarbon fuels.” Okunbor said.

His views are contained in a statement issued on Monday by Mr Bamidele Odugbesan, Shell’s Media Relations Manager.

Odugbesan stated that Okunbor made the suggestions while delivering the 51st Founders’ Day lecture of the University of Benin titled: “The Global Energy Transition and The Imperatives for Nigeria’’.

Okunbor called for an urgent optimisation of Nigeria’s energy resources for a speedy economic and industrial development.

“Nigeria has about 202 trillion cubic feet of proven gas reserves and about 600 trillion cubic feet of unproven reserves.

“Harnessing these vast gas resources, and on time too, is key in the next decade of Nigeria’s existence,” Okunbor said.

According to him, the second approach for Nigeria’s successful energy transition will be an intentional growth of off-grid power and renewables industry taking advantage of foreign financial support and technology transfer.

“The on-going energy transition is here with us. As with other transitions, it is a journey that will involve multiple approaches, collective action and undoubtedly present new challenges and opportunities.

“Nigeria is well positioned to ride the wave of the current energy transition with its abundance of natural fossil fuels and renewable solar energy.

“We need to move with a greater sense of urgency and a clear sense of direction,” he stressed.

“Nigeria, as a country with abundant natural fossil fuel resources, cannot afford for international and multilateral agencies to stop funding the development of fossil fuels, particularly gas projects.

“The transition is underway, but it will move at different paces and produce different outcomes in different countries depending on local factors.

“Society, as a whole, faces a dual challenge to transition to a low-carbon energy future, dealing with how to manage the risk of climate change, while also extending the benefits of energy to everyone on the planet.

“This is a challenge that requires changes in the way energy is produced, used and made accessible to people.

“In spite of efforts at decarbonisation, oil and gas will remain in the energy mix for some decades to come.

“This is partly a consequence of the time needed for renewables to reach the necessary level of materiality.

“In part, it is also a consequence of the lack of substitution options in some parts of the economy.

“The world will need to meet its energy needs at the same time as it tackles climate change.’’ He added.

Okunbor noted that to make the Federal Government’s Decade of Gas agenda a success, the country would need to unlock the domestic gas-to-power value chain.

This would be done by accelerating infrastructural development; drive gas-based industrialisation, and deepen domestic liquefied petroleum gas penetration, he said.

Okunbor added there was a need to build a stable regulatory environment anchored on a willing-buyer-willing-seller pricing regime.

He said there was also the need to grow the export and regional gas markets and to build local capacity and content for contractors and professionals in the gas sector.

“A transformation of the global economy is required, especially in the power sector, transport, buildings, and industry.

“These are the four main areas where energy is consumed and that produce a significant proportion of energy-related emissions of carbon dioxide,’’ he said.

Okunbor also advocated a significant shift in the consumption of energy in power, transportation, buildings and industry as key areas that would determine the long-term energy mix.