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Our Strategy

Our strategy is to provide a commercial approach to the elimination of routine gas flares by 2020 and drive positive social, environmental and economic impacts in the Niger Delta, by mobilising private sector capital towards gas flare capture projects. This initial phase of the programme strategy has so far achieved the following milestones:

  • End-to-end gas flaring diagnostic analysis showing the root cause of gas flares across all sites;
  • Clear set of programme recommendations with economic modelling, procurement process and funding options;
  • An implementation roadmap including operating model, draft timelines and key milestones; and
  • Development of business cases and identification of potential technology solutions and investors.

The programme has identified over 170 flare sites that collectively flare ~330 bscf annually. If harnessed, this AG could provide ~450,000 MT of liquefied petroleum gas (LPG) to over 4 million Nigerian households. With an investment of ~USD 3.5 billion, the NGFCP could generate ~2.5 GW of power and create ~300,000 direct and indirect jobs, whilst also having a positive impact on the environment by eliminating ~20 million tons of CO2 emissions per year and providing clean energy to 6 million households. It could also generate ~2.5 GW of power and unlock ~600,000 Metric Tonnes of LPG a year. The NGFCP will reduce the risk of sabotage to facilities in the Niger Delta region, by improving the quality of life and standards of living in the area, and involving the local communities with the gas utilization projects.

The next phase of our strategy is to:

  • Develop a world class investment approach (transactional and commercial framework – “DNA”) to commercialize flare gas in Nigeria;
  • Monetize Nigeria’s flare gas, securing sustainable value across the value chain and optimizing supply through domestic market utilisation; and
  • Create strong partnerships, especially non-traditional, cross-sectoral ones, as part of our strategy to be the world’s most innovative energy country.
On behalf of the Federal Government of Nigeria, this programme seeks to attract investments and develop a transparent market mechanism through a competitive procurement process for allocating gas flares, under clear and transparent criteria, to competent third party investors using proven technologies in commercial application globally. The Nigerian Gas Flare Commercialization Programme (NGFCP) is an opportunity for Government, industry, State Government, ethnic nationalities, and local communities to work together to resolve an oil field unacceptable practice.