Nigeria can play active role in emerging LNG market, by ILA President

The Chairman, International Law Association (ILA) Dr Tolu Aderemi has shed light on how Nigeria can take advantage and play leading role in the emerging Liquified Natural Gas (LNG) market during a meeting of Energy Stakeholder’s aimed at addressing the pressing and perennial issues facing the nation’s energy sector convened by a law firm, Perchstone & Graeys

The stakeholders meeting, led by led by Dr. Aderemi, Partner in charge of the law firm’s Energy Group, was titled “Digitization: A Catalyst for Energy Transformation In Nigeria.”

Speakers at the event included a former Honourable Minister of State for Petroleum, Prof. Emmanuel Ibe Kachikwu, NERC Commissioner, Planning, Research and Strategy, Dr. Yusuf Ali, and other leading local and foreign private sector players, stakeholders, and thought leaders.

In his opening remarks, Dr. Aderemi noted that the ongoing Ukraine-Russian conflict, and the European Union’s impending decision to cut off imports of liquefied natural gas (LNG) from Russia by 2030 present a unique opportunity for Nigeria, which the country does not seem to be cautious of, adding that Nigeria has “over the past 20 years, cumulatively earned approximately $21 billion from its energy sector, in particular, from the liquified natural gas market.”

He lamented that Nigeria, Africa’s largest oil producer, has faced ongoing complex issues in its energy sector, characterized by a combination of theft, vandalism, and inefficiencies, explaining that “According to the Nigerian National Petroleum Company (NNPC), oil theft has cost the country an estimated US$1.5 billion annually, severely impacting its ability to meet production quotas set by the Organization of the Petroleum Exporting Countries (OPEC). In recent years, the country has struggled to maintain its production levels, often falling short of its OPEC target of 1.8 million barrels per day.

“Currently, Nigeria supplies only four percent of the EU’s LNG market, and stakeholders emphasized the critical need to enhance this share,” he added, warning that if Nigeria fails to reduce the incidence of theft and vandalism of its energy infrastructure, it risks losing its chance to become a key player in the European energy market. This is a pivotal moment for Nigeria. We cannot afford to lose this market share.” he declared.

Prof. Ibe Kachikwu in his keynote address reflected on the government’s efforts to combat oil theft and the importance of adopting technology to enhance production capabilities, expressing optimism that with concerted efforts and the right preventive technologies, President Tinubu’s administration can achieve its ambitious target of producing 2 million barrels per day.

Dr. Yusuf Ali, a Commissioner at NERC, provided insights into the government’s efforts to mitigate theft within the electricity sector. He referenced the Electricity Act and various regulations aimed at enhancing security and efficiency. “The government is committed to reducing the incidence of theft in the electricity sector.

However, we must also consider the integration of ‘useful technology’ that will alleviate the load on the national grid,” he stated.

Mr. Ugo Obi, a Partner and head of the Information Communications and Technology (ICT’) Practice Group at the firm, emphasized the importance of real-time monitoring and predictive maintenance.

“We need to implement live grid simulations and AI-driven fault detection to enhance our energy infrastructure,” he said.

On his part, Emmanuel Haruna, Managing Director of Lightspeed Energy Systems (UK), outlined a series of key strategies aimed at enhancing the national grid’s efficiency and resilience.  He emphasized the transformative potential of Digital Twin (DT) technology, which enables the creation of a real-time virtual replica of the physical grid.

Ms. Chantelle K. O. Abdul, the Managing Director/Chief Executive Officer of one of Nigeria’s leading meter manufacturing companies, Mojec International Limited, echoed the need for diversification in energy sources.

“To achieve optimal use of the national electricity grid, Nigeria must seriously consider alternative fuel sources such as renewable energy. We need to move towards a cleaner, greener energy future,” she said, underscoring and advocating for a multi-faceted approach to energy production.

Despite the existence of several laws governing the energy sector, Mr. Adediran Adeyemi, a Partner at Andersen Tax, pointed out that enforcement remains a significant challenge.

“Nigeria is not lacking in legal frameworks; rather, the effectiveness and enforcement of these laws must be prioritized,” he stated.

Oktay Curebal, CEO of Fifty2, a leading Blockchain and AI firm in the UAE, spoke about the potential for partnerships between Nigerian firms and international technology providers. Fifty’s vision for Nigeria’s power sector is “A future where Nigeria’s grid operates resiliently, transparently, and efficiently – powered by AI, secured by blockchain, and optimized through IOT”.

According to him, “We have the opportunity to bring cutting-edge technology to Nigeria’s energy sector through strategic partnerships. This collaboration can pave the way for innovative solutions that address the unique challenges faced by Nigeria,” he said.

This sentiment was echoed by other Panelists, who stressed this importance of accountability and regulatory compliance in combating theft and improving infrastructure.

The panelists unanimously agreed on the necessity of adopting advanced technological solutions to the problems.

READ ALSO:  Reps member backs establishment of LNG, CNG plants in Ajaokuta