At the 46th edition of the Nigeria Annual International Conference and Exhibition (NAICE) held at Eko Hotel, Lagos, from July 31 to August 2, 2023, Mr. Bala Wunti, Chief Upstream Investment Officer, NUIMS, NNPC Ltd., emphasized the need for a balance in managing energy transition. Mr. Wunti was represented by Mr. Andrew Grant, the Head of PSC Investment Management, NUIMS.
The theme for the NAICE 2023 event was “Balancing Energy Accessibility, Affordability, and Sustainability: Strategic Options for Africa.” Mr. Wunti, a key speaker during the Panel Session, discussed the transition towards energy sustainability and strategies for developing countries.
The representative, Mr. Grant drew attention to two significant aspects of energy management: energy transition and energy security. Energy transition refers to the global shift from fossil fuels to renewable sources. In contrast, energy security calls for increased investment in all forms of energy to guarantee uninterrupted availability.
Mr. Wunti’s representative highlighted that the ongoing conflict in Europe, recent policy changes, and post-COVID recovery are spurring investment in the energy sector. Yet, while investments in energy security are increasing, the push for energy transition continues unabated.
Mr. Grant outlined the anticipated rise in global energy demand from 2021 to 2050. Despite the rise in renewable energy, oil and gas will still play a pivotal role, comprising more than 50% of the total energy mix. This insight underscores the importance of continued investment in oil and gas production even during the energy transition.
To meet escalating global energy demand, Mr. Wunti advocated for substantial investment and financial backing, especially in cleaner energy sources. This call is crucial as these sources often offer lower profit margins compared to traditional fossil fuel sources. Therefore, strategic actions towards financing the energy transition are imperative.
It was noted that approximately $1.9 trillion would be required over the next few years to meet clean energy targets. He stressed the need to ramp up gas usage for electricity, increase the use of electricity-fueled cars, and promote the use of Liquefied Petroleum Gas (LPG) for cooking in Nigeria.
Addressing the Nigerian situation, the speaker outlined the country’s energy opportunities and challenges. While Nigeria boasts abundant gas resources and renewable energy sources, it also grapples with rising energy demand, poor infrastructure, and a lack of Carbon Capture and Storage (CCS) technologies.
The speaker shared NNPC’s strategic initiatives to increase gas production, which are expected to double current production levels in the coming years. This expansion requires significant investments, reflecting the government’s commitment to boosting gas production.
The presentation concluded by outlining the building blocks for an orderly energy transition: natural resources, technology and innovation, supply chain, supportive infrastructure, economic adjustments, and robust governance institutions. Mr. Grant underlined NNPC Ltd.’s commitment to ensuring these requirements are met through reorganization, adherence to guiding principles, and investment in gas and other transitional fuels.
As a result, the company expressed optimism for a balanced, manageable energy transition capable of meeting both current and future energy needs, aligning with its mantra of “energy for today, energy for tomorrow.”
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