Nigeria grants permits for gas-flaring projects, aiming at $2 billion investment and a 3 GW potential
Nigeria has granted permits to 28 companies as part of a program that aims at ending routine gas flaring in order to reduce carbon emissions and to use some gas to generate electricity.
Officials of the Nigerian Gas Flare Commercialisation Programme said that it was a significant step towards reducing gas waste and monetizing it.
Gas flaring is controlled combustion of natural gas released during oil extraction.
A document from the NGFCP reveals that these projects have the potential to capture up to 300 million standard cubic feet of gas per day, reduce CO2 emissions by 6 million tonnes annually and unleash nearly 3 gigawatts in power generation.
Nigeria anticipates that the initiative will attract investment of up to $2 billion and create more than 100,000 jobs. The initiative could produce 170,000 tonnes of LPG per year, allowing 1.4 million households to cook with clean fuel.
The flare permits were awarded following a competitive bidding round in which 49 sites had been awarded to '42 bidders, after the programme was restructured?post-COVID-19 & the Petroleum Industry Act.
Gbenga Kmolafe was present and gave certificates to 28 companies.
An NGFCP official said, "The NGFCP plays a key role in Nigeria's efforts to reduce emissions and eliminate flaring. It also enhances Nigeria's credibility on the global stage in terms of energy transition commitments."
The programme is aligned with Nigeria's Energy Transition Plan, and it aims to transform flare gas into an economic asset.
The '28 companies' have signed agreements such as the Milestone Development and Gas Sales Agreements and are now eligible for flare gas permits.
Reduced liabilities, improved ESG performances and alignment with the government's decarbonisation programme will all benefit producers.
Power Africa, KPMG and the World Bank’s Global Gas Flaring Reduction Initiative, as well as financiers and USAID, are amongst the development partners who have provided technical and commercial frameworks to support this programme.
Officials said that while the permits are a significant milestone, engineering, financing and construction must start "in earnest."
The official continued, "The real work begins now." This programme will strengthen Nigeria's energy transformation while creating economic, industrial, and environmental value. Reporting by Camillus and Isaac Anyaogu, Writing by Chijioke Ahuocha. (Editing by Jane Merriman.
(source: Reuters)
