Chief Upstream Investment Officer for NUIMS, NNPC Ltd., Mr. Bala Wunti, has stressed the importance of a balanced approach to energy transition at the 46th edition of the Nigeria Annual International Conference and Exhibition (NAICE) in Lagos. The conference, hosted by the SPE Nigeria Council, focused on the theme “Balancing Energy Accessibility, Affordability, and Sustainability: Strategic Options for Africa.”
Wunti was represented by Andrew Grant, the Head of PSC Investment Management, NUIMS, during a panel session on “The transition towards Energy Sustainability: Strategies and Tools for developing countries.”
In his presentation, Grant emphasised the need to balance energy demand and supply in managing the energy transition. Energy transition, he explained, is an attempt to stop first-world growth, while energy security, on the other hand, insists on continued investment.
He pointed out that recent global events like the ongoing war in Europe and policy changes have created a substantial investment drive in the energy sector, even in fossil fuels. Meanwhile, he added, the push for the energy transition is still ongoing, with many companies, banks, and investors adopting Environmental, Social, and Governance (ESG) requirements for investments.
Citing the global energy mix, Mr. Grant highlighted that although energy demand would continue to rise until 2050, oil and gas would remain major energy sources, contributing more than 50% to the total energy mix. He stressed the importance of continued investment in oil and gas production alongside the pursuit of net-zero emissions.
To meet the rising global energy demand, he called for significant investment and financial backing, especially for cleaner energy sources that often have lower margins. According to an estimate shared in his presentation, around $1.9 trillion would be needed in the coming years to meet clean energy targets.
Speaking about the energy situation in Nigeria, Mr. Grant outlined the challenges and opportunities. While Nigeria boasts abundant gas resources and renewable energy sources, it also faces the hurdles of rising energy demand, poor technology, and infrastructural deficiencies.
Detailing NNPC’s strategic initiatives, Mr. Grant said they aim to double the current gas production levels in the coming years, requiring significant investments. He concluded by reiterating NNPC Ltd.’s commitment to ensuring a balanced, manageable energy transition, aligning with the company’s mantra of “Energy for today, Energy for tomorrow.”