Nigeria’s plan to sell flared gas attracts over 700 applications - BUSINESSDAY
The Nigerian Gas Flare Commercialization Programme, an ambitious plan to sell over 700 Million standard cubic feet of gas a day flared at 178 different sites, roughly the same amount used in generating grid power, to investors has attracted over 700 applications, Justice Derefaka, program manager has said.
Approved in 2016 by the Federal Government, the NGFCP seeks achieve government target of eliminating gas flaring in the Niger Delta by 2020. The Petroleum Act of 1969 and Flare Gas (Prevention of Waste and Pollution) Regulations 2018, signed in July 2018, provide the basis for the NGFCP.
Based on the right of the Federal Government under the Petroleum Act to take gas at the flare free of cost, the NGFCP was launched by the Ministry of Petroleum Resources in December 2016. It is designed to offer a series of auction rounds, wherein the Federal Government takes the flare gas at the flare site, and auctions it to third parties for commercialisation.
Derefaka further said the first bid round will be concluded on February 28 after which all the applications would be evaluated to prequalify competent investors in March. Further bid rounds would be announced before the end of the year.
According to the NGFCP, Nigeria loses approximately $1 billion of revenue through gas flaring, due to its inability to capture and commercialise flared gas in the country.