FG announces first bid round for gas flare commercialization, invites participants
Follow up to the “Flare Gas (Prevention of Waste and Pollution) Regulations 2018” which provides a legal framework for the implementation of the Nigerian Gas Flare Commercialization Programme [NGFCP], the federal government has announced first bid round for the flare gas commercialization scheme.
This is as the Federal Government has approved new regulations to end the nefarious practices of flaring natural gas by oil producing and prospecting companies in the country. This was disclosed by the Permanent Secretary of the Ministry of Petroleum Resources, Dr. Folasade Yemi-Esan, in Calabar during the opening of the technical meeting of officers and experts for the 3rd National Council on Hydrocarbons organised by the Federal Ministry of Petroleum Resources.
Yemi-Esan noted that “The National Gas Flaring Commercialisation Programme (NGFCP), which was unveiled during the Nigeria/World Bank/IGU workshop on gas flare is part of Nigeria’s contribution towards reducing global carbon emissions and climate change effects on the environment.
“I am pleased to inform you that Mr. President has also approved the ‘Flare Gas (Prevention of Waste and Pollution) Regulations 2018’ as the regulatory instrument that will underpin the implementation of the NGFCP.
“Also, the Nigeria LNG in July signed a Memorandum of Understanding (MoU) with B7 JV Consortium and the SCD JV Consortium in London, Yemi-Esan disclosed.
The agency, accordingly, has invited parties interested in participating in the NGFCP to register and apply for the issuance of the Request for Qualification (RfQ)] package which will lead to the submission of statements of qualification (SOQs) by interested parties for participation in the programme.
In an exclusive interview with Business Hilights Bureau Chief, the Program Manager, Mr. Justice Derefaka, NGFCP averred that “The auction presents a significant opportunity for domestic and international developers alike to participate in the largest market driven flare gas monetization program undertaken on this scale globally”.
“Bidders will have flexibility of choosing which flare site(s) to bid for, determine the gas price, and their end – use market or gas product, as well as the technology to be deployed. Interested parties will need to demonstrate project development experience and proposed proven technology which we expect to be in commercial application. Additionally, parties will need to demonstrate technical and commercial capacity. Successful bidders will be granted title to the flare gas through a gas sales/supply agreement with the FGN.
The agency said “An interested party (applicant) is not required to be a Nigerian entity in order to submit its SOQ. Following a successful bid, each Preferred Bidder will be required to act through or establish a Nigerian corporate entity, which will enter into the necessary Commercial Agreements.
Applicants may come from a variety of backgrounds including but not limited to communities, technology providers, project developers, resource and energy companies, industrial companies, infrastructure companies, and financial investors/lenders
NGFCP made it clear that “It is also important to note that the interface by those interested in the Programme with the NGFCP will be through the portal ONLY”.
“All registered parties are hereby notified to download the Request for Qualifications (RfQ), to submit their statements of qualification (SOQs) for participation on the programme as well as download the Programme Information Memorandum (PIM) from our website. Parties will only have access to relevant programme documents from the NGFCP Portal using their log on details.
