Energy transition: Banks Avoid Oil, Gas Project Funding

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The Nigerian oil and gas industry is going through unstable time as most foreign and local lenders have suspended funding for oil and gas projects.

Group Managing Director of Nigerian National Petroleum Company Limited, Mr.Mele Kyari, stated this at Association of Energy Correspondents of Nigeria (NAEC) 2021 Strategic International Conference in Lagos yesterday.

He disclosed that most banks have since moved away from fossil projects funding.

He said Nigeria was not against the campaign on net zero emission, but is doing everything possible to join energy transition change.

This was even as he  allayed fears of any hitch in petroleum products supply following reports of resurgence of queues in some parts of the country.

The GMD also explained why Nigeria is demanding for energy justice at the the ongoing United Nations Climate Change Conference (COP26) in Glasgow, Scotland amidst the global push for energy transition.

The conference had as its theme: ‘Petroleum Industry Act: Energy Transition and the Future of Nigeria’s Oil and Gas.’

Kyari said NNPC’s  objective  was to provide energy security for Nigeria and ensure availability of petroleum products in the country.

He said: “As we speak now, there is speculation of fuel scarcity within the media but we have over 1.7 billion litres of Premium Motor Spirit in the country.

READ ALSO: Buhari Advised NNPC To Be Global Oil Company

“We have another 2.3 billion litres coming in so there is no shortage in supply as being speculated. 

“Of course there are issues about pricing at some depots but government has no plan to revise the pricing structure.”

Kyari noted that the COP26 again highlight the challenges faced by Nigeria and other African countries in the global energy transition.

He said President Muhammadu Buhari in his speech before the world leaders had demanded for energy justice for the continent and the need to exploit the available resources as a pathway to attain the net-zero carbon objective by 2050.

The NNPC boss noted that though Africa accounted for only about three per cent of the global carbon emission, the continent still had the responsibility to join the world in combating climate change.

According to him, Nigeria has identified its abundant gas resources as its fuel for energy transition which informed the declaration of the Year 2021 to Year 2030 as the Decade of Gas by the government.

Kyari said: “We are making good progress in terms of the implementation of the PIA which is clearly creating the path for transition.

“There is no way we can achieve this feat without adequate infrastructure to transport the resources to where it will be used and that is why we are investing in massive gas infrastructure.”

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