According to Mr. Emmanuel Omuojine, Executive Director of Rainoil Ltd, efficient gas use is a surefire approach to ensure energy parity and security in Africa, Entrepreneurng report.
Omuojine made this statement in Cape Town, South Africa, at the just-completed Africa Refiners and Distributors Association Conference, according to a statement. He was presenting a paper on “The Critical Role of Liquified Petroleum Gas in Africa Energy Transition.”
Given that Nigeria has the greatest established gas reserves in Africa, with over 209 trillion cubic feet, he said that this was an anomaly.
The domestic demand for LPG in Nigeria climbed from slightly over 400,000 MT in 2016 to over 1.3 million MT in 2022, according to Omuojine.
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“There are well-known barriers to the expansion of the LPG industry in Nigeria. This comprises ongoing gas flaring, subpar gas processing facilities, inadequate transportation infrastructure, and subpar vessel berthing facilities, he continued.”
Omuojine emphasized the effects of LPG project underfunding, particularly in light of the recent shift in global funding from fossil fuel to renewable energy initiatives.
To encourage investment and lessen the approval delays experienced during project execution, regulatory and policy frameworks must also be successfully implemented.
He said that despite the expansion of renewable energy initiatives, oil, and gas would continue to play a substantial role in the continent’s energy mix, with gas making up at least 25% of it by the year 2050.
He claims that Africa contains more than 620 trillion cubic feet of natural gas reserves, which are essential to the continent’s energy security.
According to Omuojine, global oil giants like BP, Chevron, ExxonMobil, Shell, and TotalEnergies made record earnings of more than $199.3 billion in 2022. Predictably, they have backtracked on their bold intentions to drastically reduce oil and gas production by 2030.
Nigeria must completely implement the Petroleum Industry Act, particularly as it relates to the best possible use of the nation’s enormous gas reserves, to reap the benefits of its energy transition.
“Rainoil has a full stake in Nigeria’s LPG development. More than N10 billion has been invested by Rainoil in LPG bulk storage, vehicles, filling stations, and retail skids over the past four years. To meet the dependability, cost, and sustainability dilemma of the energy transition, Rainoil is committed to investing in gas.”
Finally, though Nigeria’s annual per capita Liquefied Petroleum Gas usage has increased from 1.8kg in 2015 to at least 5kg at the moment, it still imports well over 60% of its LPG needs.
Source: Punch
