Heirs Energies, NNPC Seal Deal with 5 Offtakers to Capture, Monetise 180mmscf/d Flared Gas

•Projects to be completed by Q3 2026

Peter Uzoho

Heirs Energies and Nigerian National Petroleum Company Limited (NNPC)  have taken a significant step forward in Nigeria’s gas commercialisation and environmental stewardship agenda, with the signing of gas offtake agreements with five investors under the Nigerian Gas Flare Commercialisation Programme (NGFCP) and approved Non-NGFCP frameworks.

The execution of the landmark agreement would ultimately lead to the capture and monetisation of about 180 million standard cubic feet of gas per day across the Oil Mining Lease (OML17) block being operated by Heirs Energies.

The agreement signing ceremony held yesterday in Lagos, marked a significant transition from regulatory approvals to structured commercial execution, enabling flare gas volumes across OML 17 to be captured and deployed for productive use, including power generation, industrial applications, Liquefied Petroleum Gas (LPG) and Compressed Natural Gas (CNG), in alignment with Nigeria’s gas development priorities and energy-transition objectives.

The agreements brought together Heirs Energies, as operator of the OML 17 Joint Venture, and five approved flare gas offtakers – AUT Gas, Twems Energies, Gas & Power Infrastructure Development Limited (GPID), PCCD, and Africa Gas & Transport Company Limited (AGTC) – under frameworks designed to eliminate routine flaring while converting previously wasted resources into economic value.

Speaking at the ceremony, Chief Upstream Investment Officer of NNPC Upstream Investment Management Services (NUIMS), Mr. Seyi Omotowa, representing NNPC Limited, described the milestone as a practical demonstration of Nigeria’s commitment to gas-based development.

Omotowa said, “For us at NNPC Limited and NUIMS, flare gas commercialisation is not a compliance exercise; it is a strategic pathway to improving energy availability, deepening gas-based industrialisation and strengthening Nigeria’s position as a responsible energy producer. OML 17 has become a practical model of this vision, moving decisively from approval to delivery.”

He commended Heirs Energies for disciplined execution and investment, stating that the JV continues to set benchmarks for operational delivery and gas development within Nigeria’s upstream sector.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) reaffirmed the commission’s support for the project, describing flare gas commercialisation as a cornerstone of Nigeria’s decarbonisation pathway under the Petroleum Industry Act (PIA) 2021.

“This ceremony demonstrates Heirs Energies’ commitment to eliminating routine gas flaring across OML 17 and aligns fully with the Commission’s Gas Flare Commercialisation Programme and national energy and emission-reduction objectives,” a representative of NUPRC said.

Heirs Energies’ Chief Executive Officer, Osa Igiehon, stated that the agreements reflected the company’s broader gas-led strategy and brownfield excellence approach, focused on creating long-term value for Nigeria.

Igiehon said, “Gas sits at the heart of Nigeria’s development journey. Through disciplined investment, partnership with regulators and credible offtakers, and a clear execution focus, we are converting waste into value, strengthening domestic energy supply and supporting responsible operations across OML 17.”

Providing the timelines for the projects, Manager, Gas and Commercial Operations, Heirs Energies, Mr. Joseph Adetuberu, said the projects that wouid facilitate the monetisation process wouid be completed by the third quarter of 2026.

He added that the volume of gas expected to be captured and commercialised by the five offtakers was about 180 million standard cubic feet per day.

NGFCP and Non-NGFCP flare gas projects build on recent operational progress by the OML 17 Joint Venture, including a significant increase in gas delivery to the domestic market through brownfield interventions and infrastructure optimisation.

The JV has also continued to deepen its host-community partnerships through targeted healthcare interventions, education support and skills-development programmes across its areas of operation.

With the symbolic signing completed, the flare gas offtakers are expected to progress into full project implementation, working closely with the JV, regulators and communities to deliver commercial, environmental and social outcomes.

The OML 17 NGFCP initiative reinforces Nigeria’s position as a gas-led economy, supporting domestic power generation, industrial growth and responsible resource development while advancing the country’s energy-transition objectives.