The Nigerian Upstream Petroleum Regulatory Commission has raised concerns that Nigeria could experience a gas supply crisis by 2030.
This warning was issued by NUPRC’s Chief Executive, Gbenga Komolafe, during the ongoing energy conference in Lagos, according to The Punch.
According to Komolafe, demand for gas is projected to grow at a compound annual growth rate of 16.6% per year between 2020 and 2030.
“And Nigeria may face an impending gas supply crisis with a potential shortfall of 3.1 billion cubic feet per day by 2030 in the ‘Base Case Demand and Supply’ scenario,” he stated.
Speaking at the conference themed, ‘Gas as Energy Transition Fuel: Navigating Nigeria’s Trilemma of Finance, Energy Security, and International Politics’, Komolafe emphasized that the post-Paris Agreement era has seen an increasing acknowledgment of the urgency to address climate change.
As a result, he noted that more countries and entities are setting carbon neutrality targets, leading to a global shift toward a more sustainable and low-carbon energy landscape.
He added that this trend has resulted in a decline in oil and gas investments, as investors and financiers face increasing pressure from multiple fronts.
Komolafe maintained that the blueprint for various pathways to energy transition aligns perfectly with NUPRC’s national stance on “just transition”.
“The agenda for Nigeria and other resource-rich developing economies is that the evolving energy dynamics must be calibrated against geography, history, and politics as well as the need for energy justice, equity, inclusivity, and sustainability.
“The new dynamics in the global energy arena necessitate that Nigeria, a country long dependent on the exploitation of oil and gas as the mainstay of its economy, re-examine its strategy to secure a blossoming energy future while meeting the global climate goals.
“The future we envisage for the petroleum industry should assure for the utilisation of Nigeria’s endowed natural hydrocarbon resources for shared prosperity, energy accessibility, affordability, sustainability, security as well as energy independence and energy sovereignty which are the cardinal pillars of the Nigeria Energy Transition Plan,” he stated.
Komolafe recalled that the government has designated natural gas as the immediate transition fuel, highlighting its role as a cleaner alternative to oil and coal.
He noted that natural gas emits significantly fewer greenhouse gases while providing the reliability necessary to power industries and homes.
