Skip to the content

FG to save $800m as it seeks investors to commercialise flare gas

FG to save $800m as it seeks investors to commercialise flare gas

The Federal Government is seeking investors that would be off- takers of the gas being flared by joint venture companies in order to save the country some $800million losses it suffers annually.

According Justice Derefaka, programme manager Nigerian Gas Flare commercialisation programme (NGCP) in the office of the Minister of Petroleum Resources, who disclosed this on the sideline of the ongoing West African International Petroleum Exhibition and conference holding in Lagos, the government is ready to invoke the section of the Petroleum Act which gives the minister of Petroleum Resources the power to take the gas being flared and commercialise it.

Derefaka said since the joint venture companies have failed to commercialise the over 700- 800 million cubic feet of gas per day being flared, the government would have no choice but to take the gas and commercialise it for the purpose of power generation and other uses.

Nigeria flares about 289 billion standard cubic feet of gas annually. The power sector uses 700 million standard cubic feet of gas per day.

Meanwhile, some of the stakeholders who spoke at the conference have warned that unless strategic gas infrastructure like the Escravos-Lagos Gas Pipeline, proposed Ajaokuta and Kaduna and Kano gas pipeline, East – West Gas pipeline under construction, are private sector driven, they are not likely to attract the type of investments that would make them sustainable.

According to them, the government should just be an enabler and allow the private sector to take full charge of the operations of such infrastructure in order to attract the necessary investment in that gas subsector.

Read full article by clicking the link below.

Business Day: http://www.businessdayonline.com/fg-save-800m-seeks-investors-commercialise-flare-gas/

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.