NNPC, Heirs Energies sign deals to convert flare gas into usable energy

The Nigerian National Petroleum Corporation Limited (NNPCL) and Heirs Energies have signed agreements under the Gas Flare Commercialisation Programme (NGFCP) to convert flare gas into usable energy.

The agreements, part of both NGFCP and approved non-NGFCP frameworks, aim to reduce gas flaring and increase Nigeria’s energy supply.

Flare gas from OML 17 will now be captured and used for power generation, industrial applications, and the production of Liquefied Petroleum Gas (LPG) and Compressed Natural Gas (CNG), turning previously wasted resources into productive energy.

At the signing ceremony in Lagos, NNPC’s chief upstream investment officer, Seyi Omotowa, described the initiative as a strategic move to improve energy availability, support gas-based industrialisation, and strengthen Nigeria’s position as a responsible energy producer.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) also expressed its support for the partnership.

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Osa Igiehon, Heirs Energies’ chief executive Officer, emphasised that gas is central to Nigeria’s development, noting the company’s efforts to provide a reliable and sustainable domestic energy supply.

Key points of the agreement include: Increased gas supply for power, industrial use, and LPG/CNG production, Environmental benefits by reducing gas flaring and emissions, Strengthened partnerships between NNPC, Heirs Energies, and other private sector off takers, and strategic impact on gas-to-power initiatives, contributing to improved electricity generation in Nigeria.

Since taking over OML 17 in 2021, Heirs Energies has boosted gas production, reaching a peak of 135 million standard cubic feet per day (MMscf/d).

This now supplies 45 MMscf/d to the national grid, powering plants in eastern Nigeria and increasing electricity output from 100 MW to 455 MW.

The project also supports social initiatives in host communities, including healthcare, education, and skills development, aligning with Nigeria’s long-term energy transition goals.

The gas flare commercialisation agreements mark a major step toward turning waste gas into energy, promoting environmental stewardship, energy security, and industrial growth.

Dipo Oladehinde is a skilled energy analyst with experience across Nigeria's energy sector alongside relevant know-how about Nigeria’s macro economy.

He provides a blend of market intelligence, financial analysis, industry insight, micro and macro-level analysis of a wide range of local and international issues as well as informed technical rudiments for policy-making and private directions.

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