The Nigerian National Petroleum Company Limited has emphasized the need for greater collaboration and transparency in global efforts to decarbonize the energy sector, with a focus on phasing out carbon emissions across the entire oil and gas value chain.
The goal is to achieve net-zero emissions by 2050.
The Group CEO of NNPC, Mele Kyari, made this disclosure during a strategic panel session titled “Decarbonising Operations across Upstream, Midstream and Downstream” at the Abu Dhabi International Petroleum Exhibition & Conference (ADIPEC 2024) in the UAE.
This statement underscores NNPC’s commitment to aligning with global climate goals and integrating sustainable practices across all segments of the oil and gas industry.
Represented by NNPC Ltd.’s Executive Director for Upstream, Mrs. Oritsemeyiwa Eyesan, Kyari stated that collaboration, openness, and mutual support are essential in addressing the global challenge of decarbonising the energy sector.
He argued that instead of criticising nations or organizations making slower progress, the focus should be on closing gaps and fostering collective efforts.
Kyari also highlighted a unique challenge faced by Africa: the need to balance decarbonisation efforts with the pressing issue of energy poverty.
To address these dual goals, Nigeria has implemented two major policy shifts: declaring a “decade of gas” to transition from diesel-based energy to gas, and removing fuel subsidies.
Kyari emphasized that these policy shifts are central to Nigeria’s broader decarbonisation strategy.
A key focus for NNPC Ltd. is to significantly reduce gas flaring by 2030. This effort is aligned with the country’s goal of curbing environmental impacts while promoting the use of natural gas for cleaner alternatives, such as powering vehicles and generating electricity.
Although Nigeria holds significant gas reserves of up to 209 trillion cubic feet, Mele Kyari pointed out that securing financing for gas projects remains a major hurdle.
The challenge arises because much of the funding for gas development is controlled by international oil companies, which tend to prioritize gas for export rather than domestic use.
He emphasized the need for new financial mechanisms that would enable countries with fewer energy resources, particularly those in the Global South, to access the capital needed for their energy transitions.
“It is important to know that if we must solve this existential problem, then there should be a provision for the global south (less energy endowed countries) to access capital to enable them address their problems,” he noted.
The NNPC boss expressed concern over the tendency to group all nations together in the global decarbonisation effort.
He argued that the pace of progress should be considered in light of each country’s unique starting point and circumstances.
Kyari stressed that the oil and gas industry must ensure a level playing field, where different nations can progress at their own pace, with support tailored to their specific needs and capacities.
“It is in understanding the differences that exist among us, even though we are trying to solve the same problem,” he added.
ADIPEC 2024, now celebrating its 40th edition, has gathered over 180,000 participants from across the globe. This year’s event is being held under the theme “Connecting Minds. Transforming Energy.”
