FG issues 42 permits under gas flare commercialisation programme

FILE: Chief Executive, NUPRC, Gbenga Komolafe

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The Federal Government has issued permits to 42 companies to access flare gas under the Nigerian Gas Flare Commercialisation Programme (NGFCP), a move expected to attract up to $2 billion in investments.

The announcement was made by the Commission Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, Gbenga Komolafe, during the Permit to Access Flare Gas ceremony for the 2022 NGFCP cycle on Friday in Abuja.

Komolafe said 49 flare sites were auctioned, out of which 42 bidders emerged successful.

He added that the projects are expected to capture and commercialise between 250 and 300 million standard cubic feet of gas per day currently being flared.

He also highlighted the programme’s broader impact on the economy and energy sector.

“A total of 49 flare sites have been auctioned. 42 bidders have been awarded the sites. Between 250 and 300mmscfd of currently flared gas will be captured and commercialised, eliminating approximately six million tonnes of carbon dioxide (CO2) annually.

“The programme is expected to attract up to US$2 billion in investment. More than 100,000 direct and indirect jobs will be created. About 170,000 metric tons of LPG will be produced annually, enabling clean energy access for approximately 1.4 million households. And nearly 3GW (gigawatts) of power generation potential will be unlocked,” he said.

Komolafe also announced the establishment of an NGFCP Forum and College of Awardees to support implementation and facilitate knowledge exchange.

“An NGFCP Forum and College of Awardees has been established to support project implementation and knowledge exchange.

“We have also deepened engagement with international financiers and technology partners. Furthermore, Nigeria’s leadership in practical upstream decarbonisation continues to gain global recognition,” he said.

However, Komolafe emphasized that receiving the permits was only the first step, urging companies to maintain momentum for the programme to succeed.

“Let me emphasize that the Permit to Access Flare Gas is a critical step forward, but it is not the final destination. The value of this programme will be realized only through consistent, disciplined project execution.

“The commission will closely monitor progress and performance under the Milestone Development Agreements while providing needed regulatory support required for success. So to our producers, we appreciate your cooperation and still look forward to your continuous collaboration even more so in this implementation phase.

“To our awardees, we look forward to seeing your projects progress from plans to productive assets. Together, we will continue to advance Nigeria’s upstream petroleum sector toward greater transparency, efficiency, sustainability, and global competitiveness,” he concluded.

The NGFCP was launched by the Federal Government to address the long-standing issue of gas flaring in the country’s oil-producing regions while promoting clean energy, job creation, and investment growth.

PUNCH Online reports that a flare site is where unwanted gas is burned, and gas flaring is the act of burning it.

The PUNCH journalist, Solomon, has five years experience covering crime, judiciary and defence beats.

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