Natural Resources Governance Institute (NRGI) has observed that many gas development policies that have been raised recently in Nigeria, may face some implementation challenges.
This policies and projects include: the construction of the Nigeria-Morocco gas export pipeline, expansion of Nigerian Liquified Natural Gas (NLNG) facility, revival of Nigerian Gas Flare Commercialization Programme (NGFCP).
The country’s gas resources and awaiting pipeline might become stranded due to energy transition challenges, the institute forecasted.
The institute, in an insight published on its website, also expressed worry over the actualization of Nigeria’s plan to unlock 3.1 billion standard cubic feet of gas per day, while attracting $14 billion in foreign direct investment, creating over two million jobs and adding $12 billion to government’s revenue.
The report, which raised concern about climate challenges and dwindling funds for fossil fuel projects, was authored by Senior Officer, Tengi Gorge-Ikoli, Lead Domestic Energy Transition, Aaron Sayne and African Director, Nafi Chinery.
Power plants are currently struggling to operate due to gas shortages, despite the country having over 209 trillion cubic feet of gas on paper. While the Federal Government launched the decade of gas policy about four years ago, promising to priorities gas, operators in the sector are owed over $1 billion in legacy debts.
With just about five per cent of funding coming to Africa and largely going to Mozambique, NRGI sees tougher times ahead for Nigeria, even as they insisted that the gas plan of the government does not align with its energy transition plan. The Guardian gathered.
The NGRI, has urged the government to manage its plans, by disclosing its gad plans publicly, and aligning its plans, with national, subnational and energy transition plans, urging the Federal Ministry of Petroleum Resources (Gas) to work with the National Council on Climate Change and the Energy Transition Office to align gas plans with the energy transition plans to ensure sustainability.
Also, The Federal Ministry of Petroleum Resources (Gas) and the Federal Ministry of Environment should join hands coming up with strategies that will manage risk and create more room for benefit in the post-oil and gas future.