As we navigate the challenges posed by global warming, finding cleaner and more sustainable energy sources becomes increasingly crucial. Natural gas as a transition fuel has emerged as a significant player in this pursuit, offering a viable solution to reduced carbon emissions while ensuring reliable and affordable energy. 
This edition provides valuable insights into the untapped potential of natural gas as a catalyst for carbon emission reduction and a more sustainable planet. 

The journey to carbon-neutrality by 2060 

With carbon emissions increasingly resulting in rising temperatures and global warming effects, the world has witnessed sudden and lethal climatic changes that have drastically distorted the world’s weather conditions. Massive floodings, increasingly low agricultural productivity, rising food shortages, land degradation, deadly monsoon rains, melting glaciers and unpredictable weather outcomes have left global leaders scrambling for sustainable solutions to keep the earth safe. 

Amid the prevailing changes in the climate, Nigeria’s former President, Muhammad Buhari, elected to take a bold stance. “Desertification in the north, drought in the centre, pollution in the coast, are enough evidence for all to see; Nigeria is committed to net-zero by 2060.” To support this move, the government signed the Climate Change Act 2021 to develop and implement initiatives that will foster low carbon emissions and create a sustainable environment in the country. The independent global Climate Acti Agreement’s) currently rates Nigeria’s climate targets and policies as ‘almost sufficient’, indicating that the nation’s commitment may be on the right track to achieving the Paris Agreement’s of 1.5° C temperature limit. 

According to carbonbrief.org, Nigeria was the world’s 25th biggest emitter of greenhouse gases in 2019, the second highest in Africa after South Africa. This narrative is set to change given its pledge at the COP26 climate summit in 2021 of a reduction in greenhouse gas emissions of 20% by 2030, when compared to “business-as-usual” levels. This pledge rises to 47% on the condition of international support. However, the nudging question on all our minds remains; How would the country wean itself off its addiction to fossils and fossil-based fuels? With a limited budget, fledging economy, stark energy poverty, and lack of access to the latest technology for scaled sustainable energy production, this may take some time to achieve.  

Indeed, Nigeria and other countries keen on revising the climate change threats are not naive about the baby steps ahead of full compliance with carbon-neutral energy production. According to McKinsey, countries pledging net-zero economies would require an estimated annual average spend of $9.2 trillion on physical assets. This required capital investment to execute this ambitious pivot is not entirely within reach of developing countries, like Nigeria, and this is where natural gas comes in. Natural gas is a naturally occurring mixture of gaseous hydrocarbons that are very efficient for energy-intensive utility but emits comparatively low levels of carbon dioxide compared to other fossils like Low Pour Fuel Oil (LPFO), diesel and coal. 
Mr. NJ Ayuk, Executive Chairman of the African Energy Chamber (AEC), believes getting the continent to increase the adoption and utilisation of its natural gas resources would eventually support and even accelerate progress toward the longer-term goal of transitioning away from fossil fuels. He argued that if these flared gases, which are significantly responsible for Africa’s carbon emissions, are appropriately gathered and used to address the continent’s extreme energy poverty, it will still contribute well below its counterparts to global carbon emissions. 

With natural gas being favourably trumpeted as the transition fuel toward the desired net-zero energy utility destination, Nigeria is best positioned to harness this natural resource for its people, energy supply and accelerated industrialisation.  

Harnessing and deepening natural gas utilisation  
With a proven gas reserve of 209.5 trillion cubic feet (Tcf) and Nigeria as the 9th largest holder of the resource in the world which accounts for about 3% of the world’s total natural gas reserves. It is unfortunate that Nigeria still ranks 38th worldwide for domestic natural gas utilisation. Nigerians are yet to fully harness the accruable benefits of the country’s natural gas endowment.  

The ‘Decade of Gas’ initiative is built on the conviction that gas is a crucial economic growth and development driver. This initiative sits on four key pillars: increasing domestic gas utilisation, expanding gas infrastructure, growing gas exports, and attracting foreign direct investment into the gas sector. The government outlined several policy measures to achieve these goals, including reviewing and executing a market-reflective gas pricing regime to stimulate investment in the sector, expanding gas infrastructure, and promoting gas-based industries such as fertiliser production, power generation, and petrochemicals. 

Over the past two (2) decades, Axxela has pioneered distribution and utilisation of natural gas; invested over $500 million and built over 360km of pipeline infrastructure across several industrial clusters in Nigeria spanning Lagos, Rivers, Ogun States and West Africa. While also progressing investment into virtual pipeline with the development of a Small-Scale LNG facility in Ajaokuta to serve the Northern markets.   

There is no doubt that there is a more cohesive effort by operators and the government towards creating unprecedented access to natural gas.