…Nigerians spend N16trn on generators, fuel, diesel
Ben Eguzozie
Seplat, a major Nigerian energy player, says its incoming ANOH gas plant in Ohaji, Imo State, will displace generators in Nigeria, and reduce enormous foreign exchange drain wasted on importing fuel and generating sets.
Seplat’s chief executive officer Roger Brown, said the ANOH Gas Plant, when operational, will support more than 1GW of grid-scale generation, displacing many small-scale generators.
Reports said Nigerians spent some N16.5 trillion in 2023 on buying diesel, petrol, and generators for their own electricity generation, according to the Federal Government. A power sector report said over 40% of households in Nigeria own and use generators to generate their electricity needs. The report said further that these households spend $14 billion annually to buy fuel for their generators. This dwarfs the N1 trillion revenue earned by the formal power sector in the same year. Given the several million captive generators imported into the country, Nigeria tops Africa as the highest importer of generators, and is also one of the largest importers worldwide.
Brown, speaking further on their Seplat ANOH gas plant, said: “The impacts would be enormous, as it will: Lower costs and economic benefits to businesses and households; Reduce foreign exchange drain wasted on importing fuel and generators; Drive higher efficiency and reduced emissions, both CO2 and particulates; and Ensure rehabilitation of existing grid capacity idle for lack of gas”.
He said Seplat Energy is investing in its midstream gas business to deliver more gas and Liquefied Petroleum Gas (LPG) to the market, whilst capturing more of the essential transition fuel and driving down carbon intensity.
“We have made good progress with our capital investment projects portfolio which includes end of routine flaring, ANOH, Sapele Integrated Gas Plant, which will process natural gas and LPG for delivery into the domestic market. We are working on several investment opportunities in the new energy sector with focus on developing gas-to-power and renewable energy businesses,” the Seplat CEO added.
He said, while delivering the independent keynote during the AOW Gas forum themed “Enhancing Africa’s Gas Capacity” at the ongoing Africa Oil Week (AOW) conference and exhibition in South Africa; stating that gas will provide baseload power to facilitate growth in renewable energy which is still a relatively small proportion of the energy mix in Africa.
To decarbonise, he maintained that the world needed to move away from coal as a primary source of electricity. “Gas will play a critical role in moving away from reliance on coal and oil for electricity. Messages are mixed, but it is vital that providers of capital see gas as an essential fuel source for Africa. Africa’s abundant gas reserves offer immediate solutions to immediate problems. There is therefore significant gas to deliver widespread electrification in Africa increasing the per capita electricity consumption. Africa’s development will require significant improvements in access to energy. Lower-cost, more reliable energy will drive job creation, prosperity and development. Gas can support the achievement of many United Nations Sustainable Development Goals (SDGs) through its role in reducing costs, increasing energy access and increasing prosperity,” the Seplat chief executive explained.
According to Brown, bottled gas could avoid nearly half a million deaths due to biomass cooking, as well as protect habitats from deforestation. “Natural gas is a cheap and immediate input for fertilizers needed to support large-scale agriculture. Gas is essential for basic infrastructure, as no commercially viable, low-carbon alternatives are anywhere near ready for cement, steel and glass production.”
Brown, who also spoke in a panel session at the conference styled “Gas-to-Power: Unlocking Africa’s Potential”, noted that Seplat Energy sees gas as integral to Africa’s gas-to-power system, and can provide 24/7 power where appropriate, or provide overnight baseload to support renewables.
“Gas is actually decarbonising Africa’s energy system, when compared to the millions of domestic and business generators in use today. It produces half the CO2 emissions of diesel and burns more cleanly without particulates,” he said.
