On-the-great-economic-prospects-of-the-nigerian-gas-flare-commercialization-programme-ngfcp

President Muhammadu Buhari
 



Dr. Folasade Omolara Yemi-Esan, Permanent Secretary, Federal Ministry of Petroleum Resources
 
 

Justice Derefaka, Program Manager Nigerian Gas Flare Commercialization Programme (NGFCP)

ON THE GREAT ECONOMIC PROSPECTS OF THE NIGERIAN GAS FLARE COMMERCIALIZATION PROGRAMME (NGFCP)
With reports that the Federal Government has assured that the Nigerian Gas Flare Commercialization Programme (NGFCP), would reverse the current lull in the Nigerian petroleum industry, and would attract investment valued at about $3.5 billion to the industry, we, and many stakeholders in the nation’s extractive industry are glad that this Federal Government’s initiative will not only end gas flare but would also improve the economic fortunes of the country.
In a recently reported interview with Vanguard in Abuja, the Programme Manager of the NGFCP in the Ministry of Petroleum Resources, Mr. Justice Derefaka, disclosed that “the programme would also bring 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 Liquefied Petroleum Gas (LPG) per year, giving six million households access to clean energy through Liquefied Petroleum Gas (LPG)”. Without a doubt, this is a tremendous initiative that would greatly improve the standard of living of the common man, and the nation’s economy.
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 NGFCP 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 million to $500 million. The NGFCP is clearly a High – Impact Programme”.
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 No.3 (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 utilization of widely available innovative technologies.
“The policy on gas flaring is also encapsulated in the National Gas Policy approved by the Federal Executive Council on June 2017. In the National Gas Policy, the Federal Government 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.”
Without a doubt, with the elaborated prospects of what the NGFCP initiative can bring, we strongly believe it is a very worthy venture that should be encouraged by all stakeholders in the industry and the relevant Federal Government authorities - to see that it becomes a reality. Again, we are urging the President Muhammadu Buhari-led administration to stay committed to ensuring that its NGFCP initiative should not end up on paper or in the bookshelves as we have witnessed with past administrations. But rather, they should ensure that its ongoing Gas Flare Commercialization, which will liberalize the development of the nation’s gas sector, actually becomes a “reality”.
 
 
Zik Gbemre.

 
We Mobilize Others to Fight for Individual Causes as if Those Were Our Causes