With Estimated 500m Population by 2050, Nigeria Presents Huge Investment Opportunity in Energy Sector, Says Seplat
Nigerian independent oil and gas producer, Seplat Energy Plc has asserted that with the country’s population projected at 500 million people by 2050, the country presents huge investment opportunities across the entire energy sector.
The Chief Executive Officer of Seplat Energy, Mr. Roger Brown, stated this yesterday while speaking at the ongoing Africa Energy Week holding in Cape Town, South Africa, adding that the Nigerian market equally presents huge opportunity for the company.
Brown, who delivered a keynote speech at the conference, with the theme: “Energy Security in a Consistently Shifting Energy Landscape,” highlighted clear areas of value for businesses and the Nigerian people and government.
Such areas, according to him, included improved domestic infrastructure, increased export capability, increased refining capacity, increased gas-fired capacity, improved national grid, metering, billing, payments, renewables, and clean cooking displacing biomass.
Citing the International Energy Agency’s (IEA) 2022 Africa Energy Report, he said the development of Africa’s energy system offers major opportunities to stimulate the creation of decent jobs that require wide-ranging skills.
In the Sustainable Africa Scenario, four million energy-related jobs in total were created across the continent in the 2021-2030 period, largely as a result of providing universal access to modern energy to households in sub- Saharan Africa and the rapid deployment of clean energy technologies, the IEA report stated.
Brown said Seplat Energy’s energy transition priorities remained to end flaring, monetise gas, displace diesel and biomass with cleaner fuel, extend along power value chain and target smaller scale gas-to-power customers.
“As a leader in this space, our priorities a s far as energy transition is concerned, is to end flaring, monetise gas, displace diesel and biomass with cleaner fuel, extend along power value chain and target smaller scale gas-to-power customers, whilst exploring new opportunities,” he stated.
He revealed that Seplat Energy currently produces 300 million standard cubic feet per day (MMscfd) of gas, which he noted was enough to power one gigawatts (1GW) per day.
Brown maintained that the company’s Assa North, Ohaji-South (ANOH) and Sapele gas projects have the capacity to fuel another 2GW by 2024.
“But we need to displace 20GW diesel generation with utility-scale gas-to-power /renewables. We will develop bottled gas products to displace biomass with cooking gas; and extend along value chain into power generation with gas and hybrid model,” the CEO stressed.
According to him, providing more affordable and reliable energy would boost Nigeria’s economy, drive development and create jobs.
Brown, who also spoke during a panel session at the conference, which centred on, “International Oil Companies: An insight into Mergers and Acquisition Activity on the Continent,” described his organisation as an indigenous Nigerian operator having good relationships with government and communities.
He maintained that the company has, “strong operating and safety record; well-funded balance sheet through prudent financial management and strong cash flow; internationally accountable through dual listings and good governance; and commitment to high Environment Social Governance (ESG) performance.”
All of these, he noted, had given Seplat Energy credible access to international capital markets to fund operations and merger and acquisition (M&A) deals in line with its strategy.