By Innocent Obasi
Seplat Energy Plc, Nigeria’s leading energy company listed on both the Nigerian and London Stock Exchange, has affirmed its commitment to a just and affordable energy transition.
Roger Brown, chief executive officer of Seplat Energy Plc, disclosed this in a keynote speech at the 40th Annual International Conference & Exhibition of the Nigerian Association of Petroleum Explorationists (NAPE) held in Lagos on Tuesday.
Highlighting the importance of gas in the transition process, he said, “Using gas to provide more affordable and reliable energy will boost Nigeria’s economy; drive development; create jobs and prosperity; reduce emissions from diesel usage; support future renewable deployment; and enable a just and affordable energy transition.”
Seplat Energy currently produces 300 million standard cubic feet per day (MMscfd) of gas, which he noted was enough to power one gigawatts (1GW) per day. However, the energy company said that increasing gas production and penetration in Nigeria would present a significant opportunity for the country and people, beyond displacement.
“The global quest to reach net zero emissions means energy companies must start to shift away from a heavy reliance on fossil fuels and invest in lower carbon alternatives. Banks are also facing their own pressure to cut back on fossil fuel investments and have started to pull back from financing the industry,” Brown said.
“Global demand for fossil fuels is forecast to decline significantly in the long term but they will still be relevant in meeting the energy demand, particularly with a growing world population expected to reach 10bn by 2050+. The importance of gas as a transition fuel (main baseload for electricity generation) in energy-deprived countries like Nigeria ensures demand remains substantial,” he said.
To gain access to the capital needed to develop energy, however, commitments to and, most importantly, delivery of renewable energy will be essential, he said.
The Seplat Energy CEO told the conference attendees that the inclusion of a “Just and Affordable Energy Transition” on the COP 27 agenda was encouraging because an energy transition involves balancing realities. This is a positive development, he said, adding that the majority of Nigerians currently do not have access to reliable, inexpensive energy, which slows down productivity.
On the issues facing the energy sector, he listed poor infrastructure, theft of national resources, over-reliance on oil exports and imports of refined products, global decarbonisation imbalance with development, extreme flooding, amongst others.
Brown stressed the necessity of collaboration in light of current circumstances.
“Global warming is real and as an industry operating in Nigeria, we need to do our share of addressing the issue (therefore we need to transition to a lower carbon future). However, today we are faced with some of the highest electricity prices in the world brought about by an over reliance on oil generated electricity, through off-grid mini generators (petrol and diesel) estimated to be almost 15 million in number,” he said.
On the issue of balancing realities in the transition process, he said high electricity prices result in a barrier for development of essential social needs in healthcare, education, food security and employment for a population set to double in the next three decades.
“It is critical therefore to balance global warming mitigation with access to affordable and reliable energy for all. We must make our oil sector efficient and less carbon intensive, as well developing our huge gas resources as a short to medium term objective. The oil sector ‘cash cow’ revenues need to fund this transition,” he said.
The Seplat chief said with a functioning grid system, what would then follow would be development of larger-scale solar, hydro and potentially wind power to reduce GHG intensity.
“This will enable Nigeria to increase access to energy for all and move from just over 50 percent of the population with access to electricity, towards the world average of around 90 percent,” he said.
