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The Federal Government has again, assured that ongoing efforts for the internalization gas flaring in Niger Delta will not only drive in investment in excess of $3bn, but create over 300, 000 direct and indirect jobs and drop carbon emissions by over 20, 000MT annually.
This was the position of the Program Manager of Nigerian Gas Flare Commercialization Programme (NGFCP), Justice Derefaka, at the just concluded Society of Petroleum Engineers (SPE) Oloibiri Lecture Series and Energy Forum SPEOLEF, held in Abuja recently.
According to him, government has put in place strategic structures that would stimulate action in five areas of critical importance to the Sustainable Development Goals SDGs including people, planet, prosperity, peace and partnerships.
He said “There are over 16, 000 flare sites in 90 countries globally many of which are in Nigeria,” adding that “Over the next three years, the NGFCP, an ambitious plan to sell over a billion scf of gas currently flared at 178 flare points across the Niger Delta, would cut Nigeria’s CO2 emissions by 13 million tons a year, which could be monetized under an emission carbon sale arrangement.”
“Gas flaring not only wastes valuable energy; it has significant detrimental effects on the environment and the economy. The Federal Government has, therefore, come up with policies aimed at reducing gas flaring by 2020.”
Explaining more on the importance of eliminating gas flare, Derefaka averred that “Flare gas is a waste of natural resources. Only 12.5 million out of 180 million people have access to electricity,” he said. He said the NGFCP is designed to eliminate routine and non-routine gas flaring through gas utilisation projects which are technically and commercially sustainable”.
“These projects would be developed by competent third-party investors who are being invited to participate in a competitive and transparent bid process, the first stage of which commenced in January 2019.
He recalled that FEC had earlier granted approval of the National Gas Policy, noting that gas flare out arrangement was a component of the Economic Recovery Growth Plan (ERGP), the signature economic blueprint of the current government.
Continuing, NGFCP boss made it clear that “Unlike previous declarations to end gas flaring, the NGFCP enjoys not only a political will from the highest echelons of authority in the country; it has provided investors and operators with a commercial motive to end the practice thus improving the chances of success.”
Business Hilights gathered that the driving force of the NGFCP is powered by the Flare Gas Prevention of Waste and Pollution Regulations of 2018 which was issued by the current administration to convert gas flaring from a liability to asset.
Key provisions of the 2018 Regulations focus on the reduction of the environmental and social impacts of gas flaring, prevention of waste of natural gas resources and creation of social and economic benefits from gas flare capture.
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