Breaking News

Gas flare out programme to revive oil industry fortunes – FG

Kindly Share This Story:

• Attracts additional $3.5bn investment

By Michael

THE Federal Government has assured that the Nigerian Gas Flare Commercialisation Programme, NGFCP, would reverse the current lull in the Nigerian petroleum industry and attract investment valued at about $3.5 billion to the industry.

*Gas flare

In an interview with Vanguard in Abuja, Programme Manager of the NGFCP in the Ministry of Petroleum Resources, Mr Justice Derefaka, stated that the programme would also bring an inflow of new infrastructure players to enable gas uptake and usage in previously unreachable regions and business development from gas companies to unlock new domestic markets for gas.

According to him, the potential GDP impact of the programme was estimated at over $1 billion per annum, adding that it has the potential to unlock two to three Liquefied Natural Gas, LNG, trains, around 3000 megawatts (MW) of electricity generation as well as generate circa 600,000 metric tonnes (MT) of LPG per year, giving six million households access to clean energy through Liquefied Petroleum Gas, LPG.

He said: “Assuming project sizes in the range of $10 million to $40 million, the NGFCP has a potential of triggering around 70 to 89 projects. And over a 1.5 to two-year period, the NGFCP could generate approximately 26,000 direct jobs, assuming an average direct labour force of 300 people per project and approximately 300,000 direct and indirect jobs.

“Once operational, projects launched under the NCFCP would reduce Nigeria’s emissions by about 13 million tonnes of CO2 per year, consistent with the President’s commitments to the reduction of Greenhouse Gases under the Paris Climate Change Agreement, which could also be monetized under an emission credits/carbon sale programme at a value range of $400 to $500 million. The NGFCP is clearly a High – Impact Programme.”

He noted that the journey towards accomplishing the Federal Government’s target of gas flare out has begun in earnest and on course, adding that it was imperative that as a nation, we keep up the tempo and not relent, but endeavour to look at the big picture.

“Angola needs more oil exploration, including in marginal fields to stem decline in production”

Explaining how the NGFCP would revive the fortunes of the oil and gas industry, he said, “As part of the Federal Government of Nigeria’s strategy to reposition the oil and gas industry, the Ministry of Petroleum Resources commenced the implementation of carefully conceived initiatives to foster efficiency and attract investments within the broad spectrum of the oil and gas value chain as embedded in the “7 Big Wins – Short and Medium Term priorities to grow Nigeria’s Oil and Gas industry” which was launched in October, 2016.

“A critical aspect of Big Win No3 (Gas Revolution) is the intention to drastically reduce gas flaring by harnessing otherwise flared gases to stimulate economic growth, drive investments and provide jobs in the Niger Delta through the utilisation of widely available innovative technologies.

“The policy on gas flaring is also encapsulated in the National Gas Policy approved by the Federal Executive Council in June 2017. In the National Gas Policy, the FGN made it clear that it will take measures to ensure that flare capture and utilization projects are developed, and will work collaboratively with industry, development partners, providers of flare-capture technologies and third-party investors.

“It is also considering opening an industry consultation mechanism, as an important measure in ensuring flaring targets are feasible and regulations are realistic; maximize utilization of associated gas to be treated for supply to power generation or industry, and increase the gas flaring penalty to an appropriate level sufficient to de-incentivize the practice of gas flaring whilst introducing other measures to encourage efficient gas utilization.”

Kindly Share This Story:
All rights reserved. This material and any other digital content on this platform may not be reproduced, published, broadcast, written or distributed in full or in part, without written permission from VANGUARD NEWS.


Comments expressed here do not reflect the opinions of vanguard newspapers or any employee thereof.
Do NOT follow this link or you will be banned from the site!