PwC urges Nigeria, others to eradicate energy poverty.

17 May 2021, Saxony-Anhalt, Griebo: Gas is burned off at a mobile flare system at the station of the long-distance pipeline operator Ontras Gastransport in Apollensdorf. Ontras has been renewing the Neugattersleben (Nienburg) – Trajuhn gas pipeline northeast of Wittenberg since August 2019. This pipeline is an important transport route for the energy supply of Saxony-Anhalt and neighboring regions. Before work can begin on the relevant section of the pipeline, the pressure across the downstream network is lowered as far as possible. Instead of blowing out the residual gas into the atmosphere in a controlled manner, it is burned off via a flare. This produces ten times less CO2 equivalent than blowing it out. The flare is operated under constant, expert supervision. A total of around 35,000 cubic meters of gas will be burned. The total length of the pipeline is 74 kilometers, and it has a diameter of 40 to 50 centimeters. Photo: Hendrik Schmidt/dpa-Zentralbild/ZB (Photo by Hendrik Schmidt/picture alliance via Getty Images)

Nigeria and other Africa countries have been urged to consider the eradication of energy poverty through investment in renewable.

PwC Africa Oil and Gas Leader, Pedro Omontuemhen, stated this in the firm’s Africa Energy Review 2023 report released in Lagos recently.

He added that investment into Africa’s renewables, oil and gas is pivotal to its growth as domestic and international energy market demands can be met through its resources.

“Africa’s decarbonization is important, however the eradication of energy poverty and improving energy security needs to be considered. This can be done if governments and the private sector collaborate to ensure that investments in new technologies are optimized — and this will ensure that sustainability commitments are achieved.”

He explained that Russia has reduced its supply of gas to Europe, and as Europe seeks to limit its dependence on Russian gas, Africa has an opportunity to fill the gap — but in order to do so, it needs to act now.

“What is evident from the recent energy market volatility is that reliable energy availability and pricing are key considerations for many governments in the selection of their respective energy strategies.

The solution for the power sector is not an either/or, renewables or natural gas, proposition. It requires a multi-pronged approach to decarbonization with renewables and natural gas power at its core.”

PwC Energy, Utilities and Resources Leader in Eastern Africa, David Tarimo, added that gas will continue to be a key contributor to energy and industrial systems in many countries, and will retain a critical role in power generation as a fuel for baseload and flexible generation, even as new power technologies emerge.

“While significant emphasis has been placed on developing the hydrogen economy, it remains nascent and is likely to take time to develop to its full potential. However, it can play a pivotal role in Africa’s energy transition,’’.

PwC Africa Energy, Utilities and Resources Leader, Andries Rossouw, lamented that despite the continent’s monumental fossil fuel and renewable energy potential, it faces high energy poverty levels. ‘’African countries are also faced with the challenge of how to balance energy security, climate change, and sustainable development objectives.

“It has become increasingly clear that Africa plays a critical role in addressing global energy issues. The future of African energy is lower carbon technologies, driven by strategies that can see oil, gas and renewable production grow while reducing emissions in order to meet sustainability commitments.”

On West Africa’s energy overview, the report noted that the region is a net exporter of fossil fuels primarily from Nigeria.

‘’Export growth will be driven by Liquefied Natural Gas (LNG) exports with the Senegal and Mauritania Greater Tortue Ahmeyim (GTA) LNG project coming online. The vision for West Africa is to drive and accelerate LNG exports from 4 per cent to 6 per cent to drive industrialization and energy security,” Omontuemhen says. “The region also has huge potential for investment and growth, as 70 per cent of the population is below 30 years.”


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