Fueling Progress: Axxela Harnessing the Potential of Natural Gas

 

 

UGO AMADI

As Nigeria moves to attain universal access to cleaner, affordable energy and foster infrastructure development, natural gas will remain a critical resource with immense potential to drive progress aligned with the UN Sustainable Goals.

 

Though Nigeria holds Africa’s largest proven natural gas reserves, the International Energy Agency estimates that natural gas represents only 10% of the country’s energy mix. This means there is a significant gap in where we are and the huge potential that is yet untapped. However, it is not all gloomy and bad; as report has it that the adoption of natural gas has been on an upward swing, with a steady 8% YoY increase between 2009 and 2021, rising to over 18% in 2021.

 

According to Media Reports, the industrial sector’s natural gas consumption alone has increasingly grown from 14% in 2010 to 41% in 2022.

 

The Role of Natural Gas in Accelerating UN Sustainable Development Goals (SDGs)

In Nigeria, natural gas utilisation presents a significant opportunity to achieve sustainable development and address critical challenges outlined in the United Nations’ Sustainable Development Goals (SDGs).

 

Affordable and Clean Energy (SDG 7):Access to cleaner and affordable energy is fundamental to economic development, poverty reduction, and improved quality of life. In Nigeria, natural gas offers a cleaner alternative to other traditional dirty fuels such as diesel, coal, and the heavy fuel oil, significantly reducing harmful emissions and environmental degradation. By promoting access to natural gas infrastructure and encouraging its use for power generation and industrial operations, Nigeria can enhance energy accessibility while reducing the adverse effects of emissions from the higher carbon fuel sources.

 

 

The country is gradually embracing the transition to this cleaner, more reliable, and efficient energy source. For example, Nigeria’s grid power generation is fueled up to 70% by natural gas-fired power plants, which are more energy efficient and environmentally friendly than coal or oil-fired plants. Increased utilisation of natural gas in power generation can improve grid reliability, reduce electricity costs, and contribute to a more sustainable energy mix, thereby supporting SDG 7.

 

 

Industry, Innovation and Infrastructure (SDG 9):Building infrastructure, promoting sustainable industrialisation and fostering innovation are essential for advancing economic development, and creating employment opportunities. Hence, developing an extensive natural gas infrastructure including pipelines, processing facilities, and distribution networks will play a crucial role in providing a reliable energy supply for industrial activities and enabling increased Gross Domestic Products.

 

 

Natural gas is a feedstock for various industries in manufacturing, petrochemicals, and fertilisers. Its availability and affordability can stimulate industrial growth, enhance productivity, and drive innovation. The robust infrastructure supports economic diversification, facilitates trade, and strengthens supply chains, thereby contributing to SDG 9 targets.

 

 

 

By promoting access to cleaner and affordable energy, Nigeria can harness the transformative power of natural gas to drive economic growth, enhance environmental sustainability, and improve the well-being of its citizens.

 

 

The Axxela Advantage:Axxela’s dedication to sustainability is evident in its comprehensive approach toward fostering a positive twin impact on the environment and its stakeholders. Our mission revolves around delivering innovative energy solutions that meet today’s needs and contribute to a sustainable benefit for future generations.

 

 

 

Over the past two decades, Axxela has been a reputable player in the gas & power space, unlocking energy access and enabling industrial development in its chosen markets with its substantial investment in natural gas infrastructure network across Nigeria and West Africa. With over 360km pipeline network built across major industrial clusters in Lagos, Ogun, and Port Harcourt, these pioneer initiatives have continued to deepen natural gas utilisation, offering industries a cleaner energy alternative that improves operational efficiency and significantly reduce carbon footprints. Axxela’s operational activities have been strategic in unlocking the potentials for industrial customers to switch from the use of heavy fuels to natural gas thereby supporting them to reduce over 700,000 tons of CO2 emissions annually.

 

 

 

Axxela leverages its shared values of partnership, professionalism, and excellence to encourage collaboration across the value chain; actively engaging with diverse stakeholders to align strategies, share insight, and drive collective action toward common sustainability goals. By working hand in hand with our stakeholders, we not only amplify the positive impact of our sustainability initiatives but also build trust, promote inclusivity, and empower the communities we serve.

 

 

 

Axxela’s journey towards advancing energy solutions and sustainable development is not just a corporate initiative but a commitment to shaping Nigeria’s greener and more environmentally conscious future. Through strategic investments, emission reduction measures, and a focus on customer satisfaction, Axxela continues to illuminate the path for others to follow in the pursuit of a cleaner, more sustainable energy landscape. By embracing natural gas as a transition fuel, Nigeria will surely pave the way for a more sustainable energy future.

 

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Axxela Limited is a pioneering private sector-led developer of natural gas; a company co-owned by Helios Investment Partners LLP and Sojitz Corporation. We are a designated natural gas shipper on the West African Gas Pipeline (WAGP), and a member of the West African Power Pool (WAPP), delivering natural gas to about 200 industrial and commercial customers via a vast network of natural gas infrastructure.

 

With over 360km in natural gas pipeline infrastructure built, Axxela provides unique energy solutions primarily through its subsidiaries: Gaslink Nigeria Limited, Gas Network Services Limited, Central Horizon Gas Company Limited, and Transit Gas Nigeria Limited.