April 21, 2024

FG sets new flare-out target, inaugurates gas flare commercialisation team

 

Oredola Adeola

After a failed attempt by Goodluck Jonathan’s administration to achieve the Nigerian Gas Flare Commercialisation Programme (“NGFCP”) flare-out target of 2020,  the  Federal Government through Nigerian Upstream Petroleum Regulatory Commission (NUPRC), has inaugurated a 12-member ‘Gas Flare Commercialisation Programme Team’ to steer the Federal Government’s initiative to end gas flaring by 2025.

EnergyDay recalled that as part of the commitment by Jonathan’s administration’s gas flare-out target of 2020, the now-defunct NGFCP was designed as the strategy to implement the policy objectives of the FGN for the elimination of gas flares with potentially enormous multipliers and development outcomes for Nigeria.

The objective of the NGFCP was then meant to eliminate gas flaring through technically and commercially sustainable gas utilization projects developed by competent third party investors who will be invited to participate in a competitive and transparent bid process.

Speaking on the new initiative under President Muhammadu Buhari’s administration, Mr Gbenga Komolafe, Commission’s Chief Executive,
said that monetising gas resources were a positive step towards guaranteeing energy security, especially in the global energy transition period.

Komolafe, in a statement, while inaugurating the team in Abuja at the weekend, said “Gas flaring in the industry had continued to be a menace which needed to be eradicated because of its adverse effects on the environment and people.”

He further noted that the wasteful disposal of natural gas is not only fraught with serious consequences, but it is also a major resource waste and value erosion to the country.”

Komolafe said that was why the Federal Government declared 2021 to 2030 as the “Decade of Gas”, a period within which the nation must shift focus from oil-centered exploitation to gas-driven industrial development.

He said, “ Nigeria has not only set a country deadline for 2025,  we are committed to the  Paris Climate Change Agreement, and Global Gas Flaring Partnership (GGFR) principles for global flare-out by 2030

“President Buhari made a commitment towards the Paris Agreement during the COP26 Leaders’ Summit to achieve Net Zero carbon emissions by 2060,” he said.

Komolafe further noted that the defunct NGFCP, initiated by the last administration was an initiative that was well-received by stakeholders and industry watchers but could not be fully implemented due to unforeseen circumstances.

He said, “As a nation, Nigeria must ensure that it harnesses all available gas resources for value creation.”

“ NUPRC was recommencing the process of issuing flare sites to technically competent companies, following a competitive bid process.

“This process has become crucial in view of the policy direction of the Federal Government to ensure all gas resources are developed for National development,” he added.

Komolafe stated that the commission was carrying out a study in conjunction with external technical resources to identify suitable flare sites for the auction process.

He said, “It was for the purpose that the committee of staffers of the commission was inaugurated to drive the process and coordinate implementation of the programme.

EnergyDay however gathered that the NUPRC’s commercialisation team will offer flare gas for sale through a transparent and competitive bidding process. It was revealed that a structure has been devised to provide project bankability for the Flare Gas Buyers.