The Federal Government has issued permits to 42 companies to access flare gas under the Nigerian Gas Flare Commercialisation Programme (NGFCP), in a move designed to promote cleaner energy use and attract investment into the sector.
The announcement was made on Friday in Abuja by Gbenga Komolafe, Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), during the Permit to Access Flare Gas ceremony for the 2022 NGFCP cycle.
Komolafe stated that 49 flare sites were offered for auction, with 42 companies emerging successful. He explained that the projects are expected to capture and commercialise between 250 and 300 million standard cubic feet of gas per day currently being flared in Nigeria’s oil-producing regions.
“A total of 49 flare sites have been auctioned. 42 bidders have been awarded the sites. Between 250 and 300 mmscfd of currently flared gas will be captured and commercialised, eliminating approximately six million tonnes of carbon dioxide annually,” he said. He added that the programme is anticipated to attract up to $2 billion in investment and create more than 100,000 direct and indirect jobs. Komolafe further highlighted that about 170,000 metric tonnes of liquefied petroleum gas (LPG) will be produced annually, providing clean energy access to roughly 1.4 million households, and unlocking nearly 3 gigawatts of power generation potential.
Komolafe also announced the establishment of an NGFCP Forum and a College of Awardees to facilitate knowledge exchange and support the implementation of the projects. “An NGFCP Forum and College of Awardees has been established to support project implementation and knowledge exchange. We have also deepened engagement with international financiers and technology partners. Furthermore, Nigeria’s leadership in practical upstream decarbonisation continues to gain global recognition,” he said.
However, he cautioned that the issuance of permits marks only the beginning of the programme. “Let me emphasize that the Permit to Access Flare Gas is a critical step forward, but it is not the final destination. The value of this programme will be realized only through consistent, disciplined project execution,” Komolafe said. He assured that the commission would closely monitor progress under the Milestone Development Agreements while providing regulatory support to ensure success.
“To our awardees, we look forward to seeing your projects progress from plans to productive assets. Together, we will continue to advance Nigeria’s upstream petroleum sector toward greater transparency, efficiency, sustainability, and global competitiveness,” he added.
The NGFCP was launched to address Nigeria’s long-standing gas flaring problem, while promoting clean energy production, creating employment opportunities, and attracting investment to the country’s oil and gas sector.
