Nigeria has awarded permits to 28 companies to capture and commercialise gas that is currently being flared by the oil industry, in a bid to reduce emissions and generate revenue from a previously wasted resource.
- Nigeria has granted permits to 28 companies to capture flared gas from oil operations to reduce emissions and generate revenue.
- The Nigerian Gas Flare Commercialisation Programme aims to end flaring and monetise wasted gas resources.
- NUPRC reported that between 250 and 300 million cubic feet of gas will be processed under this initiative.
- This program aids Nigeria’s goal to achieve net-zero emissions by 2060, fostering significant investments and job creation.
Nigeria has awarded permits to 28 companies to capture and commercialise gas that is currently being flared by the oil industry, in a bid to reduce emissions and generate revenue from a previously wasted resource.
The Nigerian Gas Flare Commercialisation Programme (NGFCP) marks a major step toward ending flaring and monetising wasted gas, Reuters reported.
Gbenga Komolafe, head of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), said there were 42 bids submitted to harvest gas at 49 sites in the oil-producing Niger Delta, with 14 applicants still needing to meet permit requirements.
“Between 250 and 300 million standard cubic feet of gas will be captured and commercialised,” under the initiative, Komolafe told an event in Abuja, the capital, on Friday.
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Although Nigeria is Africa’s largest crude oil producer, its gas reserves surpass its oil reserves. Historically, much of this gas has been flared because it was not commercially viable to capture and use.
The government seeks to change this through the Nigerian Gas Flare Commercialisation Program, which offers incentives for the industry to capture and sell the gas.
The initiative, part of Nigeria’s broader plan to achieve net-zero emissions by 2060, is expected to attract up to $2 billion in investment and create more than 100,000 direct and indirect jobs.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) estimates the program could cut roughly six million tons of carbon dioxide emissions annually and support nearly three gigawatts of potential electricity generation.
In October, Nigeria’s gas output reached about 221 billion standard cubic feet, with roughly 7.6% of it flared, according to the NUPRC.
