Natural Gas Remains a Critical Transition Fuel for Africa – MEMAN

Natural Gas Remains a Critical Transition Fuel for Africa - MEMAN

The Major Energies Marketers Association of Nigeria (MEMAN) has called for massive investment in harnessing natural gas, stressing that it remains a critical transition fuel for Africa.

MEMAN said natural gas, whether Liquefied Natural Gas (LNG), Liquefied Petroleum Gas (LPG), or Compressed Natural Gas (CNG), provides a cleaner form of energy that supports industrialisation.

MEMAN Chairman, Mr Huub Stokman, stated this at the OTL Downstream Energy Week 2025 during a panel session themed: “Navigating the New Frontier: Competition and Market Access in the Downstream Oil & Gas Industry.”

Stokman emphasized that given the peculiar status of Africa’s energy landscape, there is a need to manage both traditional fossil fuel and also work towards accelerating the adoption of renewable energy sources to tackle energy poverty in the continent.

“We must manage both traditional fossil fuels and the accelerated adoption of renewables. Natural gas—whether LNG, LPG, or CNG—remains a critical transition fuel for Africa, providing a cleaner alternative to heavy fuels and biomass, and supporting industrialisation and access to energy,” Stokman stated.

Speaking on Nigeria’s downstream oil & gas industry landscape, the MEMAN chairman pointed out that the removal of fuel subsidy has ushered in a new era of deregulation, creating challenges and opportunities as well.

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According to him, fuel subsidy removal has created opportunities for the adoption of innovative business models such as Energy-as-a-Service (EaaS), integrated multi-energy hubs, Virtual Power Plants (VPPs), and peer-to-peer (P2P) energy trading.

He observed that the downstream environment has witnessed significant changes, with policymakers now recognising gas as a cleaner transition fuel, with rising demand for CNG and LNG.

“At the same time, the industry is adopting sustainable and digital technologies — including solar, biofuels, and advanced monitoring tools, to improve efficiency and enhance service delivery,” he said.

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He also mentioned that decentralisation and digitization are transforming the market, with renewable energy technology advancing distributed energy systems that can reach the underserved population.

Stokman stated that the decentralised renewable energy solutions can be deployed to address the energy needs of about 600 million people without access.

The MEMAN chairman advocated regional energy integration through cross-border gas pipelines and harmonised regulatory frameworks in ECOWAS and SADC to address single-country supply vulnerabilities and generate economies of scale.

He encouraged industry players to use pay-as-you-go distribution methods, local micro-depots, and data-driven maintenance and monitoring technologies to reduce operating costs and increase efficiency.

He also called for what he called “greater regulatory clarity”, stressing that it is crucial to reduce “investment risks” and drive long-term growth.

He also stated that there is a need to inject significant capital in the sector across refining, storage, distribution, and low-carbon infrastructure to support Nigeria’s energy goals.

Victor Ezeja, a journalist, and scholar
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Victor Ezeja is a passionate journalist, scholar and analyst of socioeconomic issues in Nigeria and Africa. He is skilled in energy reporting, business and economy, and holds a master's degree in mass communication.

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