- US-Nigeria Strategic Energy Dialogue featured discussions on enhancing energy collaboration, with support from key partners, including the US government, World Bank, and African Development Bank
- The Clean Energy Alliance of Nigeria (CLEAN) was unveiled during the dialogue, aimed at promoting clean energy investments in Nigeria
- Nigeria launched a $550 million upstream gas project with TotalEnergies and NNPCL, set to generate 350 million standard cubic feet of gas daily
In a significant move for Nigeria’s energy sector, the Presidency has announced the beginning of a $550 million upstream gas project with the Nigerian National Petroleum Corporation Ltd. (NNPCL) and TotalEnergies, centred on the Ubeta field.
Olu Verheijen, Special Adviser to President Bola Tinubu on Energy, revealed this information at the first US-Nigeria Strategic Energy Dialogue hosted by the US State Department in Washington, DC.
Nigeria's upstream gas initiative to support climate goals, Verheijen announces
Morenike Adewunmi, Stakeholder Manager at the Office of the Special Adviser to the President on Energy, issued the statement in Abuja, which was released to the News Agency of Nigeria (NAN) on Tuesday, September 17.
Verheijen revealed that the upstream gas project is projected to generate 350 million standard cubic feet of gas per day once fully operational during a luncheon associated with the inaugural dialogue.
She reaffirmed her confidence in the bright prospects for Nigeria’s energy sector, especially with the new emphasis on using gas as a transition fuel to meet the country's obligations under the Paris climate agreement.
“We see resilient demand for gas through the energy transition as it is a readily available, cost-effective backup to renewables while cutting emissions by half immediately,” Verheijen stated.
Addressing the gathering, Verheijen explained that President Bola Tinubu’s major energy reforms, introduced in June 2023, are geared towards boosting energy security, drawing in investments, and fostering closer collaboration with crucial partners such as the US government.
She noted that these crucial reforms had significantly improved the viability of the country’s gas-to-power value chain.
“Nigeria seeks to create a robust regulatory framework and attract new investments for the production of gas for power, transportation and clean cooking.
The reforms, as she described, featured strategies to enhance cash flow in electricity distribution via smart metering, address unpaid debts to investors, and lower carbon emissions from gas production.
Nigeria targets $2.5 billion in new oil and gas investments, says Verheijen
She further noted that to bolster the reform initiatives, the President enacted five new executive orders designed to offer fiscal incentives for investment and to lower both the cost and time required to finalise and implement contracts for gas infrastructure development and expansion.
The presidential aide stated that the directives were also designed to unlock up to $2.5 billion in new oil and gas investments in the country without delay.
She expressed gratitude for the support from financing and technical partners such as the US government, the World Bank, and the African Development Bank, which has been crucial for expanding electricity access and reliability through various grid and off-grid solutions.
Verheijen praises US, World Bank for support
“I cannot overstate the importance of our longstanding relationship with the US and this inaugural dialogue.
“The goal of this dialogue for us to jointly proffer solutions that will close the energy access gap for close to 100 million Nigerians who still lack reliable power.
“We want existing and potential partners to better understand our areas of priority so that our collaboration can be better targeted, and with tangible outcomes,” Verheijen stated.
Pyatt hails energy dialogue as key to advancing energy security
Geoffrey Pyatt, US Assistant Secretary of the State Department’s Bureau of Energy Resources, emphasised that the dialogue was well-suited and strategically beneficial.
He said, “The inaugural U.S.-Nigeria Strategic Energy Dialogue has set the stage for strengthened energy collaboration between the United States and Nigeria.
“Together, we’re advancing shared energy security, decarbonisation, and economic growth goals.”
Representatives from the Bureau of African Affairs, USAID, the U.S. Department of Energy, the U.S. Trade and Development Agency (USTDA), and the Export-Import Bank were part of the US delegation.
The Nigerian delegation to the event was led by the Minister of State for Petroleum Resources (Gas) Ekperikpe Ekpo.
The event was also attended by officials from the Ministry of Power, the Nigerian Upstream Petroleum Regulatory Commission, the Nigerian Midstream and Downstream Petroleum Regulatory Authority, the Nigerian Content Development and Monitoring Board, and NNPC Limited.
The Dialogue featured the unveiling of a new initiative by the U.S. State Department, the Clean Energy Alliance of Nigeria (CLEAN), aimed at rallying stakeholders to back and encourage investment in clean energy projects within Nigeria.
Nigeria aims for 18,000 CNG conversions by year-end to push shift from petrol, diesel
Meanwhile, TheRadar earlier reported that the Federal Government distributed 1,200 CNG conversion kits to five states in Nigeria, to achieve 18,000 conversions by year-end.
According to the report, Nigeria’s transition to Compressed Natural Gas (CNG) aims to cut costly petrol and diesel subsidies.