Energy
Energy Experts Proffer Solution To Nigeria’s Energy Conundrum
By SANDRA ANI
Key players and experts in Nigeria’s oil and gas and power sectors have called for concerted measures and actions that will lead to property utilization of the country’s vast gas reserves.
Key players and experts in Nigeria’s oil and gas and power sectors have called for concerted measures and actions that will lead to property utilization of the country’s vast gas reserves.
They expressed the opinion that Nigeria’s gas reserves are critical asset towards achieving the ongoing energy transition that will be affordable and sustainable.
Speaking at the 4th Oriental News conference in Lagos on Thursday July 24,2025 themed’ , “Integrating Nigeria’s Gas Potentials into Strategic Energy Transition Initiatives,” the Manager, Energy Transition NLNG, Temitope Ogedengbe, advised that Nigeria must avoid adopting a “copy-paste” approach to energy transition, insisting that the country must tailor its strategy to reflect local realities, including the urgent need for economic growth, energy security, and national development.
“Our transition must leverage our unique strengths and resources to grow our economy,” Ogedengbe said. “Energy transition should not be a copy-paste exercise.
“Nigeria must design its own, since we need economic development, energy security, and to address developmental issues.”
Ogedengbe, while highlighting challenges around gas utilisation, lamented that despite Nigeria’s abundant natural gas resources, a large portion is still being flared or reinjected due to the absence of viable commercial arrangements.
“We’re not taking nearly the amount we should be. We are still failing and reinjecting because there is no commercial arrangement to optimise this; for many reasons,” he stated.
He noted that while marginal fields hold potential, they are difficult to produce economically.
“The issues there are marginal fields, which are difficult to produce,” he said, adding that the Nigerian Upstream Petroleum Regulatory Commission’s (NUPRC) Gas Flaring Commercialisation Programme is trying to address this.
According to him, a significant chunk of Nigeria’s gas is still either exported or flared, while domestic utilisation and value addition remain underdeveloped.
“We are not investing enough, and we are not examining the right approaches,” he added.
Speaking on the global LNG market, Ogedengbe noted that although there is still a market for LNG produced by Nigeria, demand patterns are shifting, particularly in Europe, where buyers now favour lower-carbon LNG options.
He said, “There is still a market for LNG produced in Nigeria, but what is happening is that Europe is asking for lower-carbon LNG.
“There’s a need to use operational levers to reduce carbon, attract premium markets, and unlock funding opportunities, including through reduced taxes and levies.”
He further stated the NLNG remains central to Nigeria’s gas future, revealing that the company plans to expand its capacity to 30 million tonnes per annum.
” As part of its energy transition strategy, the company is integrating technologies and processes aimed at reducing emissions and generating carbon credits.
“We’re using offsets to reduce our emissions, both at the national and international levels, to take carbon out of the atmosphere and promote our operations,” he explained.
Ogedengbe emphasized the need for a multi-pronged, well-coordinated approach to decarbonising the country’s gas sector to ensure long-term viability and global competitiveness.
Also, at the same conference, former Power Minister, Prof. Bart Nnaji said that shortage of gas supply and infrastructure deficit has continued to act as disincentive to investment and growth of the power sector.
Nnaji, said in the next two decades power generation in the country will be dominated by gas fired plants.
He attributed Nigeria’s persistent gas shortage to inadequate investment in gas infrastructure and called for more support from both government and the private sector.
Nnaji, who chaired the event, addressed stakeholders from across the oil and gas value chain, including key government officials.
He said the country’s gas sector remains underdeveloped due to insufficient investment in extraction, transmission, and transportation.
“The focus should not rest solely on government-led efforts — the private sector must also play a vital role,” the former minister said.
“What we need is for the government to act as a true enabler, offering the necessary support for infrastructure and gas harvesting. It’s baffling that with over 210 trillion cubic feet of gas, we still face local shortages.
“We’re unable to produce sufficient quantities to support operations across the country. Though operations improved this year, they weren’t previously at full capacity. A seventh train is underway, but we need more gas.”
He said Nigeria’s history of mining and exporting coal before abandoning it reflects a wider pattern of resource neglect.
Nnaji said gas-fired plants are critical to Nigeria’s power generation, emphasising the need for a reliable supply to ensure thermal plants operate effectively.
He noted that Geometric Power Ltd, which he chairs, is among the companies generating electricity through thermal sources.
“For effective supply from thermal plants, an adequate and reliable gas supply is vital. While we have hydro power, gas-fired plants remain dominant and will likely stay that way for the next ten to twenty years,” he said.
Nnaji acknowledged the role of renewable energy in rural electrification but maintained that Nigeria’s baseload power must continue to come from gas or hydro sources.
He noted that hydro power, however, comes with limitations that require regional cooperation.
In her submission, Engr. Chichi Emenike, Acting Managing Director and Gas Asset Manager of Neconde Energy Limited, sounded alarm over the consequences of some policies of Government that has undermined the ongoing energy transition.
According to her, unpaid gas supplies, dollarised operations, and policy inconsistencies are discouraging investment in the sector.
Emenike, said Neconde, for instance, has gas that has been produced and supplied to the electricity generation companies (GenCos) and that has not been paid for almost two years now.”
“This is a serious conundrum, whereas we have sourced funds from somewhere to produce these gas molecules from our facilities. How am I going to pay back?”
Emenike further explained that Nigeria’s upstream gas production is highly dollarised, making it costlier than crude oil development and difficult to sustain without a commercially viable framework.
“Don’t forget that the gas production industry is highly dollarised, including the requisite inputs. There is no part of the operation, including the technology, that is produced locally. The bulk of it has to be imported in US$.
“The O&M, well drilling, and accessories to drill a gas well are all dollarised. So, it costs more than what it costs to drill a crude oil well. The handling of a gas well is highly sophisticated, unlike that of crude oil.”
Speaking on systemic issues within the gas-to-power value chain, Engr. Emenike said, “Over 500 million standard cubic feet (scf) of gas are being transported with the NGIC pipeline.
“If you multiply this figure by one dollar, you will understand the cost. Whereas so much money went into drilling some of these wells, it costs $35,000 plus or minus, and that is outside other assumptions of fees.”
Commenting on the financing and investment environment, Emenike called for a pragmatic national energy plan that begins with achievable goals, rather than lofty ambitions.
“Let us start with what is doable; I mean the low-hanging fruit. Let us stop with big numbers. We should tidy up small fields that are struggling to juggle both CAPEX and OPEX.
“We need to sit down once as a nation to be selfish enough to determine what is needed to take care of Nigeria’s economy alone in the Gulf of Guinea.”
She called for urgent clarity on Nigeria’s position in the energy transition and a realistic approach to funding.
“Where do we sit as Nigerians today on this energy transition plan? Where is the money to run the transition?
“Presently in Nigeria, it is difficult for a gas investor to determine end-to-end where the funds would be coming from. We need a strategy; we need to be serious. Or else, gas investors would rather take what they should have invested in the Nigerian economy to Mozambique or elsewhere.”
Emenike further warned about the economic risks associated with policy instability.
“Gas economics is such that it must be end-to-end. Even before you draw down the first financing, you have tied that investment to a commercial arrangement.
“When you have a business, as much as you think you know, in the case of Nigeria, once you put your leg out in this economy, you will see so many things flood in unexpectedly. Your IRR (rate of return) goes down the drain due to policy flip-flops and multiplicities of levies and fees.”
She insisted that the sector needs regulatory reforms and an end to what she described as rent-seeking behaviour by government agencies.
“We have to deal with the rent-seeking attitude of our regulators to enable investors repatriate their investment financing.
“They should stop flogging investors with all forms of regulations and later charge them with potential incidents of non-conformity, which translates to fines, even for not operating, after they have created the crisis.”
Calling for collaborative efforts, she advocated infrastructure sharing and coordination within the value chain.
“We need to leverage infrastructure to unlock the stranded assets across the country. We need to look at how to put together our war chest to achieve a lot for the industry. We need to set the rules of the game.”
She emphasised the importance of investor confidence and a market-driven approach.
“Every investor wants to see a clear line of sight. Market forces should be allowed to play out. The government should not create a monopolistic environment that stifles investment. They should allow it to have that flexibility.”
“None of these government officials understand how investors raise capital to finance their projects and the terms of it. Government has no business in business. They should stop the rent-seeking attitude and stop looking for short-term benefits. Quick fixes will not work.”
She has therefore challenged the FG to focus inwardly and begin with achievable solutions.
According to her, “There is much more to be gained if we have a very selfish Nigerian plan that focuses on Nigerian interests alone. This can service the entire Gulf of Guinea if we are serious. Let us start with the small gas fields.
She further urged the FG to stop putting benchmarks on gas for power, adding that the market forces should be allowed to dictate the price.
Engr. Emenike charged the Nigerian government to allow flexibility in the market and encourage alliances within the value chain operators.
Energy
Equatorial Guinea Boosts Liquefied Natural Gas (LNG) Production with Chevron Aseng Agreement
The agreement aims to unlock additional gas reserves offshore Equatorial Guinea, supporting the country’s goals to become a regional gas processing hub, reports ISRAEL ORJI
The Government of Equatorial Guinea has taken a decisive step to advance its natural gas agenda, signing an Incentives Agreement with energy major Chevron for the development of the Aseng Gas Project in Block I.
The landmark agreement – signed between the Ministry of Hydrocarbons and Mining Development the Ministry of Finance and Chevron – underscores the country’s long-term strategy to consolidate its position as a premier hub for natural gas in Africa.
The Aseng Gas Project represents an initial investment of approximately $690 million. The development will unlock new volumes of natural gas that will be directed toward domestic power generation and processing at the EGLNG facility.
In doing so, it secures feedstock for one of the country’s most important industrial assets, the Punta Europa Gas Complex, while creating new opportunities for value addition and energy security.
This agreement signals more than a single project milestone. It demonstrates the government’s commitment to advancing the Gas Mega Hub (GMH) initiative – a bold strategy that leverages Equatorial Guinea’s existing infrastructure to monetize regional gas resources.
The integration of gas produced from the Aseng field represents the third phase of the GMH. By ensuring reliable supply to midstream facilities, the Aseng development positions the country as a critical partner in the continent’s energy future.
“The Aseng Gas Project will provide a reliable supply of LNG to global markets while serving as a catalyst for advancing strategic developments such as the Punta Europa complex. In addition, it will enhance national and regional energy security, support clean cooking initiatives and drive economic growth through a sustainable energy supply,” stated Antonio Oburu Ondo, Minister of Hydrocarbons and Mining Development of Equatorial Guinea.
Equatorial Guinea’s GMH has been a focal point of regional cooperation since its inception. The initiative seeks to aggregate stranded or associated gas resources from domestic fields and neighboring countries, processing them through existing infrastructure at Punta Europa.
By doing so, the country is transforming potential flared or underutilized resources into export revenue, domestic power and industrial growth.
In recent years, the government has signed a series of agreements aimed at expanding the scope of the hub. Partnerships with international operators have allowed Equatorial Guinea to process gas from the Alen Field and other regional assets.
The Aseng Gas Project adds further momentum, with Chevron consolidating its position as a strategic partner committed to the long-term success of the initiative.
Chevron’s agreement follows key milestones in Equatorial Guinea’s gas market. Notably, ConocoPhillips exports its first cargo from the Punta Europe facility in June 2025, representing a critical step towards advancing the GMH initiative.
The Aseng Gas Project represents a cornerstone for the next phase of the country’s energy development.
By combining strategic partnerships, progressive reforms and visionary infrastructure planning, Equatorial Guinea is demonstrating how gas can serve as both an export revenue generator and a catalyst for broad-based economic transformation.
As the GMH advances, the country is solidifying its reputation as a model for African energy development – one where resource monetization, investor confidence, and sustainable growth converge.
Building on this momentum and to reinforce its attractiveness as an investment destination, the government is undertaking comprehensive regulatory reforms.
The Hydrocarbons Law, Tax Law, Labor Law and the Special Economic Zones framework are all under review, reflecting a deliberate effort to create a modern, transparent, and competitive environment for investors.
These reforms will not only strengthen Equatorial Guinea’s credibility as a reliable partner but also lay the foundation for sustained project development across the oil and gas value chain.
The reforms complement a drive by the Ministry of Hydrocarbons and Mining Development to attract new investment across the market.
The country is preparing to launch its 2026 licensing round, featuring key assets that will support the country’s production goals.
By working closely with foreign operators, introducing new investment prospects and revisiting its regulatory environment, Equatorial Guinea is positioning itself for long-term growth.
The African Energy Chamber (AEC), the voice of the African energy sector, supports the Aseng Gas Project agreement as it secures new gas supply, strengthens the Punta Europa complex, and drives the success of the Gas Mega Hub.
The re-entry into Ogoniland marks a historic turning point for Nigeria, not just in terms of oil production, but more broadly, this milestone reflects the spirit of President Bola Ahmed Tinubu’s Renewed Hope Agenda, which commits to building a stronger country, attracting responsible investment, and ensuring that community development is at the heart of national progress.
Speaking during the presentation of the Ogoni Consultations Report at the State House in Abuja on Wednesday, President Tinubu acknowledged that the Ogoni people have endured long years of pain, and that this re-entry reflects the government’s recognition of their sacrifices.
“We are not, as a government, taking lightly the years of pain endured in Ogoniland. We recognise that, otherwise we would not be here today…We declare with conviction that hope is here and is back with us,” the President said.
The Group Chief Executive Officer of NNPC Ltd, Engr. Bashir Bayo Ojulari, echoed the President’s sentiments, calling the development a re-affirmation of the company’s unwavering commitment to the Ogoni re-entry plan and a bold step towards justice, healing, and national prosperity. He emphasized that the re-entry demonstrates that Nigeria can confront its past, honour the sacrifices of its communities, and forge a new path with a vision of prosperity and justice for all.
“The re-entry into Ogoniland is not just about oil and gas. It is about justice, healing, and charting a new future for our nation,” Ojulari said.
Ogoni re-entry can be seen as both a test and an opportunity for the country. It demonstrates that equity can exist in national development, and oil can co-exist with environmental stewardship and inclusive nation-building. This milestone is a practical example of how President Tinubu’s Renewed Hope Agenda translates into reality by strengthening our country, creating conditions for responsible investment, while prioritising the prosperity of host communities.
Ojulari acknowledged the pivotal leadership of the National Security Adviser, Mallam Nuhu Ribadu, in convening a committee that brought diverse stakeholders together, creating the platform for dialogue and consensus that made this breakthrough possible. He also praised the work of Professor Don Baridam and members of the Presidential Committee, who engaged tirelessly and transparently with all relevant parties to produce a report that tells a story of fairness and inclusivity that will ultimately bring closure and renew hope for the Ogoni people and all Nigerians.
“The lesson is that this journey cannot be driven solely by production volumes. It must be anchored on justice, equity, sustainability, and most importantly, collaboration with the very people whose land bears this wealth,” he stated.
To that end, Ojulari was categorical that in resuming operations in Ogoni, NNPC Ltd will continue to build trust by prioritising community engagements with key stakeholders, investing in infrastructure, and empowering local enterprise.
He confirmed that NNPC has already began initiatives in road construction, infrastructure upgrades, and economic empowerment programs designed to rebuild trust and demonstrate accountability in an inclusive manner. “NNPC Ltd is determined to transform Ogoniland from a symbol of conflict into a beacon of reconciliation, renewal, and sustainable progress,” he concluded.
In his remarks, the National Security Adviser, Mallam Nuhu Ribadu, echoed the general sentiments that sustainable progress is possible and proven through collaboration with all parties concerned. He said the report was the outcome of an intensive, methodical, and transparent engagement, while Professor Baridam, on behalf of the Committee, thanked the President for his unwavering commitment to the well-being of the Ogoni people, stressing that through diplomacy and relentless insistence on dialogue, host community trust was earned, and hope restored.
This restored hope is also a message for the international community— Ogoni re-entry is more than a Nigerian milestone. It is a classic example of how a resource-rich nation like Nigeria can reconcile environmental protection with energy security. By placing community benefit at the centre, Nigeria is rewriting the global playbook on how oil and gas operations can co-exist with local aspirations, sharing a global example of how energy development can be reconciled with environmental protection and community inclusion.
For Nigeria, it signals progress is being redefined as a partnership between government, industry, and the people.
Sahara Group, a leading global energy and infrastructure conglomerate, will spotlight “cooperation, innovation and sustainability” as crucial elements for Africa’s energy transition during the 2025 Africa Energy Week (AEW) in Cape Town.
For three decades, Sahara Group has powered growth and broadened access to energy across Africa and will through its delegation to the AEW urge the continent’s stakeholders, policy makers, and governments to join forces towards driving Africa-centric solutions for all sectors in the energy value chain.
The 2025 Africa Energy Week (AEW), scheduled for Cape Town, South Africa, from September 29 to October 3, will focus on the theme: “Invest in African Energies: Positioning Africa as the Global Energy Champion.”
Speaking ahead of the event, Ade Odunsi, Executive Director, Sahara Group, said “Sahara Group believes Africa can shape a future that secures energy access for Africans safely, reliably, and sustainably by leveraging technology, innovation, and collaborating on policies to drive affordable, reliable, and cleaner energy across the continent.”
Sahara Group’s delegation to AEW 2025 include Leste Aihevba, Chief Technical Officer, Asharami Energy, a Sahara Group Upstream Company, Bethel Obioma, Head Corporate Communications, Sahara Group, Dr. Tosin Etomi, Head of Commercial and Planning, Asharami Energy, and Mariah Lucciano-Gabriel, Head of Integrated Gas Ventures, Asharami Energy.
Aihevba, who is leading the charge for advancing digital oilfield technologies to drive triple digit growth ambitions, will showcase how domestication of international best practices can help shape the local capacity building narrative to deliver significant improvements in operational efficiency and climate conscious sustainability initiatives in Africa.
“Asharami Energy is aligning global best practices with local realities, building capacity, and driving operational excellence across our portfolio. This synergy of innovation and responsibility is what ensures we deliver value today while safeguarding the energy future of tomorrow.”
Etomi will highlight the critical role data should play in harnessing opportunities for growing the energy sector in Africa. “Data has become the most powerful currency in building efficiency and resilience. By applying advanced analytics to our operations across Africa, we are improving asset performance, enhancing transparency, and unlocking financing pathways that ensure African energy projects compete on a global stage.”
Lucciano-Gabriel will speak on gas commercialisation, highlighting Gas as Africa’s bridge to a cleaner energy future. “With projects focused on capturing and monetizing flare gas, Asharami Energy is at the helm of efforts that are not only boosting domestic energy availability and driving the Nigerian Decade of Gas strategy but also curbing emissions and accelerating sustainable growth across the continent.”
Obioma, who will moderate the AEW 2025 session on “Rethinking Utility Models to Build Resilient and Affordable Electricity Markets,” said “The future of electricity in Africa will be defined by models that support a mix of micro grids, mini grids, national grids and renewable solutions, designed to serve communities and industries sustainably.”
With an integrated energy model spanning upstream, midstream, downstream, power, and infrastructure in Africa, Asia, Europe and the Middle East, Sahara Group remains committed to delivering value across the energy value chain.
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