The Role of Gas in Advancing Africa’s Industrialization – NLNG’s Perspective
Nigeria LNG Limited (NLNG) has emphasized the crucial role of clean energy, particularly gas, in propelling Africa’s industrialization forward. With a youthful population, abundant natural resources, and emerging internal markets, the continent stands on the brink of significant growth, provided it can harness the potential of clean energy effectively.
During a keynote address at the 7th Nigeria International Energy Summit (NIES), Dr. Philip Mshelbila, NLNG’s Managing Director and Chief Executive Officer, underscored the pivotal role of energy in aligning with the UN Sustainable Development Goals to facilitate Africa’s development.
Gas emerges as a linchpin in this endeavor, not only as a cleaner energy alternative but also as a transitional fuel experiencing a surge in demand both continentally and globally. Projections indicate a sharp rise in global demand, expected to reach 5.1 trillion cubic meters by 2035.
However, unlocking Africa’s gas potential requires substantial investments to ramp up production and ensure significant supplies to the global market. Dr. Mshelbila stressed the urgency for African nations, especially Nigeria, to attract essential investments across the gas value chain, from exploration to production.
Despite Nigeria’s wealth of gas resources, inadequate infrastructure poses a significant hurdle, impeding domestic energy growth, power generation, and export commitments. Dr. Mshelbila highlighted the Federal Government’s estimate of a $20 billion yearly investment requirement over the next decade to bridge the infrastructure gap.
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There is cause for optimism, however, as Dr. Mshelbila called for concerted efforts to advance the Decade of Gas program, particularly leveraging the Petroleum Industry Act (PIA) to revamp the industry landscape and address infrastructure deficiencies. He stressed the importance of creating an enabling environment marked by regulatory stability and operational efficiency to attract vital foreign investment needed to bridge the infrastructure gap sustainably and competitively.
Dr. Mshelbila’s remarks came during a special session themed “The Gas Day” at the summit, highlighting the critical role of gas in Africa’s energy transition and industrialization journey.
