…Seplat Energy’s ANOH, Sapele Gas Projects to Another 2000MW of Electricity by 2024
Seplat Energy Plc, leading Nigerian energy company listed on the Nigerian Exchange and the London Stock Exchange, says its commitment to a just and affordable energy transition is unwavering.
The energy company maintains that its ANOH and upgraded Sapele gas projects could fuel another 2000 megawatts of electricity by 2024, thus displacing the wide use of diesel/petrol generators for electricity as well as the use of biomass as cooking fuel.
The Chief Executive Officer of Seplat Energy Plc, Mr. Roger Brown said this during his Keynote at the opening ceremony of the 40th Annual International Conference & Exhibition of the Nigerian Association of Petroleum Explorationists (NAPE) held in Lagos on Tuesday, themed: Global Energy Transition and the Future of the Oil and Gas Industry: Evolving Regulations, Emerging Concepts and Opportunities.
Mr. Brown said for Seplat Energy, “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 operates 300MMscfd, which is enough
to power more than 1GW per day; and strongly believes that the country needs to
utilise gas to displace 20GW diesel/petrol generators, as well as the use of
biomass as cooking fuel. Beyond displacement, however, Seplat Energy believes
that increased gas production and penetration in Nigeria presents huge
opportunity for the Nigerian state and people.
Mr. Brown said: “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.
“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.
“However, to gain access to the capital needed to develop
energy, commitments to and most importantly delivery of renewable energy will
be essential.”
The Seplat Energy boss told the conference attendants that
it was encouraging that a “Just and Affordable Energy Transition” is now on the
agenda at COP 27 as energy transition is about balancing realities. “This is a
welcome development,” he said, adding that: “Currently, most Nigerians lack
access to affordable, reliable energy, which hampers development.
“Poor infrastructure cum, theft of national resources;
over-reliance on oil exports and imports of refined products; global
decarbonisation imbalance with development; and extreme flooding, amongst
others, are some of the challenges to be considered.”
Speaking on the need for collaboration given today’s realities, Mr. Brown maintained that: “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.
“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.”
With a functioning grid system as we see elsewhere in the
world, the Seplat CEO said: “We can then develop 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 per cent of the population with access to electricity,
towards the world average of around 90 per cent.”
The ceremony had in attendance industry regulators, players,
service companies, financial institutions, analysts and media, among other
energy stakeholders in Nigeria and overseas.