The International Gas Union has urged Nigeria and other gas-rich African nations to adopt indigenous natural gas production to boost Nigeria and Africa’s economy.
This recommendation was given by the organization in its Global Voice of Gas report from March 2023, which also observed that recent spikes in energy, food, and supply chain costs have had a particularly negative impact on Africa.
On the plus side, the IGU said that Africa’s enormous natural gas reserves can be leveraged to boost the continent’s economic success, alleviate energy poverty, and supply the rest of the globe with more dependable and cleaner energy.
Nigeria Liquefied Natural Gas Limited has great potential, according to the IGU’s research, and has recently earned $9 billion in taxes and $18 billion in dividends for the Nigerian government.
The article states that in addition to exports, NLNG also provides liquefied natural gas to the domestic market.
In June 2021, three local enterprises will be the recipients of LNG sales under 10-year contracts totaling 1.1 metric tons per annum. In addition, the project creates high-quality natural gas liquids for the domestic market, such as liquefied petroleum gas which is used in Nigerian homes instead of dirtier fuels for cooking.
The IGU further observed that to advance industrialization, create jobs, establish supply chains, produce fertilizers and petrochemicals, and grow energy-intensive industries like cement, steel, and desalination, Nigeria and other African nations must adopt gas locally.
“In nations without alternatives, gas can also offer baseload electricity, ultimately assisting the integration of renewable sources. Moreover, gradually phasing out coal and diesel, it may offer families and businesses cleaner, more affordable energy while also short-term decarbonizing the power mix.
“With the help of renewable gas, hydrogen, and carbon capture technologies, gas networks can later be decarbonized. The report includes case studies of natural gas development that benefited the environment and the economy.”
Yet according to the IGU, Nigeria and its peers must get over these three challenges for this to happen.
“By creating industrial clusters, restructuring the electricity market, fostering regionalization, and boosting the uptake of small-scale technology, Africa can improve the penetration of gas.
“Governments must improve the business climate in Africa and lower the risks involved. For the continent’s expanding gas value chains to flourish, policy predictability and physical security must come first.”
Africa is energy-starved and must employ all of its resources to solve energy access gaps despite the global effort for reducing carbon emissions. In the medium to long term, increasing natural gas exploration and production will aid Nigeria and other African nations in industrializing, creating jobs, and giving millions of people who don’t currently have access to energy access
