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To ensure integrity and transparency in the evaluation process of Statements of Qualification (SOQs) and Request for Proposal (RfP) package from interested parties for participation, the Minister of State for Petroleum, Dr. Ibe Kachukwu will next month, inaugurate the approved nominees for the team.
The nominees were drawn from the development partners’ advisory team, NEITI, and OPT as independent observer Group (IOG) for the RFQ and RFP evaluation process.
In a statement, the Program Officer for the Nigerian gas Flare Commercialization Programme (NGFCP), Mr. Justice Derefaka said “As part of the Federal Government of Nigeria’s (FGN) strategy to reposition the oil and gas industry, the Ministry of Petroleum Resources commenced the implementation of carefully conceived initiatives to foster efficiency and attract investments along the oil and gas value chain as embedded in the “7 Big Wins – Short and Medium Term priorities to grow Nigeria’s Oil and Gas industry” which was launched in October, 2016 by His Excellency, President Muhammad Buhari.
“A critical aspect of Big Win No 3 (Gas Revolution) intends to reduce gas flaring by harnessing flare gas to stimulate economic growth, drive investments and provide jobs in the Niger Delta through the utilization of widely available innovative technologies. Our policy on gas flaring is also encapsulated in our National Gas Policy approved by the Federal Executive Council in June 2017.
Derefaka noted recalled that “To support this strategy, the FGN included gas flare reduction as a key national greenhouse gas emissions mitigation in its Nationally Determined Contributions (NDC) under the United Nations Framework Convention on Climate Change (UNFCCC) and the Federal Executive Council in June 2016 approved the Nigerian Gas Flare Commercialization Programme (NGFCP). Consistent with Nigeria’s commitments for reduction of GHG under the Paris Climate Change Agreement, the program would reduce Nigeria’s CO2 emissions by approximately 13 million tons/year, which could be monetized under an emission credits/carbon sale programme.
The NGFCP is designed as the strategy to implement the policy objectives of the FG for the elimination of gas flares from Nigeria’s oil & gas fields in the near term (2-3 years), with potentially enormous multiplier and development outcomes for Nigeria. It is also designed as the contribution of the petroleum sector to Nigeria’s Intended Nationally Determined Contributions (INDC) under the Paris Agreement (COP21);
Besides, it is an approach 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. The commercialisation approach has been considered from legal, technical, economic, commercial and developmental standpoints. And it is a unique and historic opportunity to attract major investment in economically viable gas flare capture projects whilst permanently addressing a 60-year environmental problem in Nigeria.
According to him, “Third party investors are to access and utilize flared gas that is currently being sent to flare and convert same into Flare-Gas-to-Market-Products (FG-2-MP) & demonstrate project development experience and proven technology in commercial application. The NGFCP is also designed as an important “climate change action plan” for the Nation. And it is the first market driven program undertaken on this scale globally – Bidders will have flexibility of choosing which flare site(s) to bid for, the gas price, and the end market or gas product, as well as the technology to be used.
NGFCP boss averred that “As at today, over 700 investors have registered to download the RfQ package to submit their statements of qualification (SOQs) for participation in the programme. In terms of developmental impact, the NGFCP benefits are huge, ranging from an overall inward investment of around US $3 – 3.5 billion; a potential annual revenues/gross domestic product (GDP) impact around ~ US $ 1 billion/annum. The NGFCP could also generate approximately 300,000 direct and indirect jobs and unlock and supply around 600,000 MT of liquefied Petroleum Gas (LPG) product to 6 million homes in Nigeria.
Derefaka further revealed to Business Hilights that in compliance with the approved Programme implementation timeline following the closure of submission of SOQ’s on the Friday, 22nd March, 2019, the SOQ opening ceremony will be carried out by the Minister of State for Petroleum Resources, Dr Emmanuel Ibe Kachikwu on Thursday, 11th April 2019 at 11am. This event will take place at the Petroleum Technology Development Fund (PTDF) Complex, 2 Memorial Close, Central Business District, Abuja.
However, ahead of the ceremony, a 2-day training for the Proposal Evaluation Committee (PEC) and the Independent Observer Group (IOG) members on the NGFCP background and SOQ evaluation facilitated by Messrs Gas Strategies under the US Power Africa Assistance Programme will be live from Tuesday 2nd – Wednesday 3rd April, 2019 from 8:00am – 5:00pm daily
Derefaka disclosed that an International Press Conference on the “Journey So Far & Next Line of Action for the NGFCP” and SOQ opening ceremony by the Minister of State, Ibe Kachukwu on Thursday, 11th April 2019 at 11am and this will be followed by the commencement of the SOQ Evaluation and Qualification process scheduled to start from Monday 15th April 2019 – Friday 24th May 2019 from 8:00am – 5:00pm daily at the PTDF towers, Abuja.

By Business Hilights

Business Hilights is an online news channel conceptualized and structured to report and track on a daily basis; latest developments in critical business sectors to serve as a one stop news gateway for governments, foreign and indigenous investors.

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