… Says significant opportunities exist for the downstream sector in the global transition
The Lagos State Government, on Tuesday, said that is fully committed to ensuring energy security and deepening the utilization of cleaner fuels in the state to ensure a safe and sustainable environment for its residents.
The Governor of Lagos State, Mr. Babajide Sanwo-Olu who made the commitment in a goodwill message he delivered at the 15th Edition of the Oil Trading & Logistics (OTL) Africa Downstream Week 2021 with the theme, “Downstream In Transition: Getting Set”, which kicked off in Lagos today, disclosed that the State Government, through its implementing ministry and agency was on target to accelerate the transition of Lagos State to a 21st century, low-carbon, economy – an integral part of his administration’s THEMES Agenda.
Represented by the Commissioner for Energy and Mineral Resources, Lagos State, Engr. Olalere Odusote, Governor Sanwo-Olu observed that some of the current initiatives of the State government in the sector included Lagos State Gas Policy where he said that his administration recognized the need for an enabling environment supported by a clear and unambiguous statement of intention by the government to boost domestic utilization of natural gas in the State and foster investment in the gas sector.
According to the Governor, “In line with this, Lagos State, through its Ministry of Energy & Mineral Resources, is in the process of outlining its gas policy, an appropriate institutional, legal, regulatory and commercial framework for the gas sector, as well as other strategies to boost domestic utilisation in the State, remove barriers affecting investment and enhance development of the sector.
“Lagos State Oil & Gas Safety Initiative – the State Government, through its relevant MDAs (Ministry of Energy & Mineral Resources, Ministry of Physical Planning and Urban Development, LASEPA, Lagos State Safety Commission, IOGC) is currently increasing monitoring efforts and implementing sustainable initiatives to ensure safe oil and gas operations within the State. The State is also collaborating with key industry regulators and stakeholders (such as DPR and SON) to ensure safety standards, regulatory compliance certificates and permits are adhered to by sector operators.
“Enabling ease of doing business – as part of its efforts towards improving ease of doing business in the State by reducing regulatory and bureaucratic hurdles, the Lagos State Government has streamlined the previously onerous process for obtaining relevant oil and gas permits/approvals from the State MDAs. The Ministry of Energy and Mineral Resources has been designated as the one-stop shop for all oil and gas activities in the State.
“LPG Intervention Scheme – aimed at deepening use of Liquefied Petroleum Gas (LPG) as primary fuel for domestic and roadside cooking. LASG, through Ibile Oil & Gas Corporation has commenced the deployment of a State-wide retail network of strategically located neighbourhood LPG Skid/Plant Stations across the five divisions of Lagos State, offering residents the opportunity to easily access LPG to refill their cylinders at a consistently stable price. The State has also commenced implementation of an LPG reticulation programme for structured estates and high rises.
“Promotion of Auto-Gas – In line with the Federal Government’s commitment to emission reductions through the National Gas Expansion Plan, one of the key target areas in the collaboration with the State Government through IOGC, is the introduction and deployment of Auto-gas.”
He continued, “The LASG Gas for Transport initiative will involve: The deployment and roll out of LPG and Compressed Natural Gas (CNG) conversion centers in partnership with Original Equipment Manufacturers (OEMs), rolling out Auto-gas dispenser on the forecourts and standalone Auto-gas stations across the five divisions of Lagos State. IOGC’s existing and future Retail Filling Stations in strategic locations across Lagos is expected to be an enabler for Gas for transport.”
Sanwo-Olu went on to assert that the key takeaway was that significant opportunities exist for the downstream sector in the global transition with potentially huge returns on investment for well positioned players adding that strategic collaboration among the various stakeholders across the value chain was key to maximising the full potential of the sector and ensuring its sustainability in the long term.
He assured that the Lagos State Government was ready to drive the institutional framework that would provide a conducive, investor friendly environment to encourage and support private sector investments insisting that Lagos State played a pivotal role in the Nigerian economy as the nation’s commercial nerve center and remained the focal point of the country’s economic activity.
“The State Government is fully committed to supporting private sector innovations targeted towards driving sustainable economic growth and making Lagos State become a 21st century, low carbon, economy”, he added.
While describing the theme of this year’s EXPO, “Downstream in Transition: Getting Set”, as timely in view of the evolving global climate action agenda, the Governor noted that the increasing pressures for decarbonization was reshaping the future of many industries adding that the oil and gas downstream sector was no exception.
“Energy transition towards a more sustainable and lower carbon footprint will have a significant impact on the downstream sector, thus, there is an urgent need to reposition the sector in the global transition map, to not only survive the low carbon energy transition but to support and lead it.
“Sector players need to understand their role in the energy transition and move quickly to rethink strategy and take action towards reinventing and repositioning to take advantage of the inherent opportunities (diversification / optimisation / new market opportunities).
“Based on recent sector updates, a number of innovative players in the sector are already taking the lead in the transition. However, sector-wide collaboration is key to ensuring long term sustainability of the sector, hence the strategic importance of this OTL EXPO”, he stated.
Photo: (L-R): Dr. Emeka Akabogu, Chairman, OTL Africa Downstream; Charles Atiomo, representing Dr. Samba Seye, Managing Director, Total Energies; Sir Billy Okoye, Group Executive Director, Ventures and Bussiness Development, Nigerian National Petroleum Corporation (NNPC); Engr. Adeyemi Adetunji, representing the Group Managing Director of NNPC, Mallam Mele Kyari and Engr. Anthony Ogbuigwe, Managing Director, Gas and Energy Resources Consulting Limited after a panel discussion at the ongoing OTL Africa Downstream Week holding in Lagos from 26th to 29th October, 2021.
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