Energy transition: Why marginal fields bid round remains big deal to Nigeria ― Buhari

President Muhammadu Buhari on Monday, said Marginal Fields Bid Rounds remain a big deal for Nigeria despite the gradual global shift from the use of fossil fuels.

He said awarding the marginal fields gives Nigeria the opportunity to speed up its fossil fuel exploitation before it is finally abandoned as the fuel of choice.

The President stated this at the opening of the 2022 Nigeria International Energy Summit (NIES) at the Presidential Banquet Hall, Abuja.

According to him, with the rise in crude oil prices which had taken a dip in 2020, this stands as an opportunity for the country especially as it now has a PIA in place.

“The enabling investment environment which has been the bane of the industry has been taken care of by provisions of the PIA.

“There is now a level of certainty for the regulatory, administrative and fiscal framework and the legitimate grievances of host committee communities most impacted by activities of the industry have been addressed by the Act to demonstrate our seriousness,” he said.

While highlighting the various major achievements of his administration in the energy sector, the President who was represented by the Minister of State for Petroleum, Timipre Sylva said the Marginal fields bid rounds as well as passage of the Petroleum Industry Act ” surmounted over a decade of Jinks before seeing the light of day.”

“The year 2021 was a milestone for Nigeria’s energy sector as it witnessed a number of record-breaking activities. The marginal fields bid round, the Petroleum Industry Act and declaration of the years 2021 to 2030 as a year of the decade of gas,” he said.

He further reiterated the government’s commitment to the transformation of Nigeria into a gas-based industrialized nation through an enhanced accelerated gas revolution.

“We will ensure further optimal exploitation and utilisation of the country’s vast natural gas resources given the country’s potential of about 600 TCF natural gas reserves as the enormous potential to diversify and grow Nigeria’s economy,” he assured.

He stressed that the government was already putting up measures to ensure seamless energy transition as the country joins in the race for net-zero carbon emission.

His words: “We are already building blocks and bricks that will ensure seamless energy transition as the country joins in the race for net-zero carbon emission. That is why this administration declared natural gas as a transition fuel for Nigeria.

“Without doubt, natural gas ticks all the boxes we’re prepared to face the challenge of the rising global demand for cleaner energy sources.”

Meanwhile, earlier in his address, the Minister of State for Petroleum Resources, Sylva disclosed that the Federal Government (FG) in partnership with Afreximbank has established a $50million Liquefied Petroleum Gas (LPG) energy fund in a bid to further deepen Nigeria’s use of domestic gas.

He stated that in line with the National Gas flare commercialization programme, as well as specific provisions in the new petroleum industry act that elevate LPG as a fuel of choice compared to all other competing fuels, the FG has also established a 20 million cylinder injection scheme.

Sylva explained that Five to 10 million of these are to be introduced in pilot states in 2022.

“LPG is said to be part of the destination, as it is being used as a precursor for green hydrocarbon with zero-emission and eventually moving to bio LPG will allow countries like Nigeria to keep existing infrastructure in place capitalize on already existing supply and distribution chains and reach net zero at a far lower cost.

“This, without doubt, will help overcome the concern of stranded assets and consumers will not have to reinvest inexpensive electrical solutions if their gas appliances can be repurposed for zero-carbon LPG,” he explained.

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