With total assets of $64 billion, NNPC targets 2026 to achieve Nigeria’s energy self-sufficiency

• Country’s energy resources can power New York for 120 years, says Kyari

Emmanuel Addeh

With assets of over $64 billion, the Nigerian National Petroleum Company (NNPC) Limited said yesterday that it is focusing on 2026 to achieve energy self-sufficiency in the country.

Group Managing Director, NNPC, Mallam Mele Kyari made the revelation when delivering a keynote speech at the World Energy Summit on ‘Setting the Agenda for Global Transition’, hosted by Reuters in New York, United States.

Represented at the event by Group Managing Director, National Petroleum Investment Management Services (NAPIMS), Mr. Bala Wunti, Kyari said Nigeria was ready to rally investors for the development of the country’s gas sector.

Emphasizing that with 230 QBTU of 2P gas resources, the country would deploy gas as an energy transition bridge, NNPC GMD noted that Nigeria has never been more ready to attract investment in the sector, especially with the aim of help achieve its net zero goals.

Although the country currently imports nearly 100% of its fuels, the NNPC said its priority is to move away from reliance on imported energy, both primary and secondary, and become a net exporter of the products over the next few years. next four years.

Regarding energy poverty in Nigeria, Kyari noted that with the current energy consumption of 8.4 mmbtu per capita, nearly 100 million Nigerians, or 45% of the entire population, currently lack access to electricity, which ranks Nigeria 164th in the world.

Also, as the country emits 123 million tonnes of CO2 per year, Kyari reiterated that the country has already set and is working towards 2060 to achieve the goal of net zero emissions.

The NNPC boss pointed out that the company also has an ambition to see 100% of the population have access to electricity as well as a consumption target of more than 70 mmbtu per capita by 2035.

He listed the building blocks of NAPIMS as reducing emissions, harnessing innovation and technology, replacing high carbon fuel systems with low carbon alternatives as well as renewing the atmosphere by removing carbon emissions using carbon capture technologies.

Additionally, he explained that the company plans to invest in restoring and replanting its rainforests to offset atmospheric carbon emissions, as well as renaming the organization to emphasize sustainability. environmental.

He pointed out that natural gas will be the backbone of NNPC’s game in the hydrogen economy, noting that on the supply side, it will be involved in providing clean hydrogen as an energy resource. major alternative to hydrocarbons.

However, on the demand side, Kyari said the NNPC will invest in the transport sector by facilitating the demand and supply chain for fuel cell vehicles as an alternative to conventional electric vehicles.

According to Kyari, there remains a strong correlation between the market and the investment climate in the upstream oil and gas sector, with the former driving the latter and in turn being driven by finance.

As the global energy mix shifts towards low-carbon fuels, Kyari said growth driven by less carbon-intensive energy sources is expected to grow by an average of around 0.8%, faster than the oil which will increase by 0.5%.

On top of that, he postulated that coal will lose market share from 26% in 2020 to 16% by 2050 to renewables.

But oil and natural gas, he said, will continue to hold more than 50% of the market share of total energy supply.

Linking markets, investment and finance, he noted that economic development will require massive energy supply while markets will provide trading platforms for energy exchange, stressing that energy sources must be unlocked and delivered efficiently.

“Unlocking the energy requires development and delivery infrastructure. These require investment. Investments need funding and supporting rules and regulations.

“Without funding, investment plans will remain aspirations. Today’s finance has a preference for investments that will unlock cleaner and more sustainable energy resources such as natural gas and hydrogen which Nigeria has embraced, not only as a transitional fuel but also as an energy resource of destination,” he said.

He explained that NNPC has the particular geographical advantage of operating from a position of easy access to the Atlantic, Pacific and Indian Oceans, giving it unhindered access to the most critical trade routes and markets.

“With 6 QBTUs of energy production, per year, we rank 18th in the world and 2nd in Africa. Our energy resources can power New York City for the next 120 years,” he told investors.