Business Latest

200 firms scramble for Nigeria’s gas flare sites

GAS FLARING: Oil companies are more comfortable paying fines -Gov Okowa

In a move to conserve Nigeria’s ample natural gas resources, the Federal Government on Monday announced it had pruned the number of 800 investors, interested in commercialising gas flaring in the country, to 200.

Sarki Ahmed, the Director and Chief Executive Officer of the Department of Petroleum Resources (DPR) made the disclosure in Lagos at a conference for Nigeria Gas Flare Commercialisation Programme (NGFCP) bidders.

He said the meeting was called to deliberate on how to manage gas flaring in Nigeria with 320 billion cubic feet of gas (bcf) flared in 2019 alone.

Ahmed asserted that the NGCFP had a duty to curb gas flaring by means of sustainable gas utilisation projects established by capable third party investors who have scaled the hurdle of the rigorous and transparent bid process.

The DPR’s boss affirmed that the first phase of the NGFCP would see the DPR allocate 45 out of the 178 gas flare sites to qualified firms.

The NGFCP, a brainchild of President Muhammadu Buhari, launched in October 2016 with a mandate to convert waste to fortune by harnessing huge quantities of gas lost in Nigeria annually for economic expansion and job creation especially in the Niger Delta region.

Ahmed affirmed that the NGCFP had a duty to curb gas flaring by means of sustainable gas utilisation projects established by capable third party investors who have scaled the hurdle of the rigorous and transparent bid process.

“There are other sites that are coming on board. This is to show that investors are interested in Nigeria because of its potential. We cannot allow this potential to stay untapped,” he said.

The DPR’s chief further stated that the FG set out to reduce gas flaring as a measure for curtailing global warming in fulfilment of the Paris Climate Agreement.

On his part, Olawole Ogunsola, the Deputy Manager, Gas Production and Flare Monitoring, Gas Division NNPC, confirmed that the Request for Proposal and commercial agreements were sent out in January 2020.

In his word “The government is committed to accelerating this programme and see that it comes to an end.

“The DPR has deployed all mechanisms to conclude this seamlessly, proficiently and efficiently.

“We invite the investors to submit credible proposals that will stand the test of time, that will create value for you and help us address this recurring decimal of gas flaring.”

According to PricewaterhouseCoopers (PwC), Nigeria lost about N233 billion ($761.6 million) to flared gas in 2018 alone.

Ronald Adamolekun

Ronald Adamolekun is a creative writer with a mixed bag of experience in fields as diverse as data journalism, financial reporting and editing.
Ronald Adamolekun

Join the conversation

Opinions

About the author

Ronald Adamolekun

Ronald Adamolekun is a creative writer with a mixed bag of experience in fields as diverse as data journalism, financial reporting and editing.

Do NOT follow this link or you will be banned from the site!