Towards-the-end-to-gas-flare-as-the-federal-government-hopes-to Attract-investors-from-the-united-states-and-the-us-government-to-participate-in-the-nigerian-gas-flare-commercialization-programme-ngfcp
September 7, 2020 | News
TOWARDS THE END TO GAS FLARE – AS THE FEDERAL GOVERNMENT HOPES TO ATTRACT INVESTORS FROM THE UNITED STATES AND THE US GOVERNMENT TO PARTICIPATE IN THE NIGERIAN GAS FLARE COMMERCIALIZATION PROGRAMME (NGFCP)
Timipre Sylva
Minister of State for Petroleum Resources of Nigeria
Justice O. Derefaka
Program Manager,
Nigerian Gas Flare Commercialization Program (NGFCP).
We are delighted with the recent development regarding Nigeria’s efforts towards ending gas flare in the country with its Nigerian Gas Flare Commercialization Programme (NGFCP), as it was reported that the Federal Government was set to unveil opportunities in the NGFCP to the United States of America (USA) Government and its investors later this month. This latest information came from Senior Officials of the Federal Ministry of Petroleum Resources, who revealed too that the move was also aimed at attracting more Foreign Direct Investments (FDI) into Nigeria. The Programme Manager of the NGFCP, Federal Ministry of Petroleum Resources, Justice Derefaka, said the US had indicated interest and sought to know more about the gas flare commercialization drive being pursued in Nigeria.
As reported some few months ago, the NGFCP has the potential of generating approximately $3.5bn of inward investment, with the potential Gross Domestic Product (GDP) impact estimated at over $1bn per annum.
As noted by Derefake, it was on the basis to achieve the set target, that they issued letters of qualification to 205 firms interested in the project. The report stated that over 850 interested parties had registered their interests in the programme, while 238 applicants had submitted Statements of Qualification (SOQ) in response to the Request for Qualification published by the Department of Petroleum Resources. A total of 238 SOQ documents were evaluated in accordance with the provisions of applicable regulations, guidelines and standard Department of Petroleum Resources (DPR) practices for bid evaluation and were adjudged either a ‘pass’ or ‘fail’ status. “Following a rigorous exercise conducted in line with established protocol and using the electronic evaluation tool, 205 applicants emerged successful, attaining a ‘pass status’, while the remaining 33 applicants did not meet the minimum requirements and thus attained ‘fail status’.”
On the latest subject development, it was gathered that the United States Government, through the US Commercial Service in Lagos, Nigeria, had requested that the NGFCP be explained fully at a three-day business forum entitled, ‘Discover Global Markets: Powering and Building the Middle East and Africa’, holding in Houston, Texas this month. As we all know, Flare gas is essentially Associated Gas (AG) that is produced with crude oil, as they both come out of the ground. But flare gas pollutes the environment, causing sickness and other environmental hazards, particularly in locations where oil companies operate such as the Niger Delta Region.
Derefaka stated that the opportunity to present the NGFCP to the United States Government and investors was a huge one for Nigeria in the pursuit of gas flare commercialization. He noted that the NGFCP would boost Liquefied Natural Gas (NLG) production; increase power generation, among others, when fully implemented. The NGFCP manager said, “It could potentially unlock two to three liquefied natural gas trains, around 3000 Megawatts (MW) of electricity generation as well as generate about 600,000 metric tonnes of Liquefied Petroleum Gas (LPG) per year, giving six million households access to clean energy through the LPG. The programme could 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.”
The former Technical Adviser, Refineries, Gas, Power and Downstream Infrastructure to the Minister of State for Petroleum Resources, Rabiu Suleiman, also stated recently that a lot of companies had been showing interest in the commercialization programme. According to him, the Federal Government has received statements of qualification from 240 firms, from which 205 parties have made the final screening.
With the elaborated prospects of what the NGFCP initiative can bring to Nigeria, especially with the interest being shown by the US Government and its Investors, we strongly believe that this project at the long run, would change the face of the Nigerian extractive industry, particularly for the good of the locals and people of the Niger Delta region that bears the brunt of the industry. It is therefore, 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. We once again urge 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
Timipre Sylva
Minister of State for Petroleum Resources of Nigeria
Justice O. Derefaka
Program Manager,
Nigerian Gas Flare Commercialization Program (NGFCP).
We are delighted with the recent development regarding Nigeria’s efforts towards ending gas flare in the country with its Nigerian Gas Flare Commercialization Programme (NGFCP), as it was reported that the Federal Government was set to unveil opportunities in the NGFCP to the United States of America (USA) Government and its investors later this month. This latest information came from Senior Officials of the Federal Ministry of Petroleum Resources, who revealed too that the move was also aimed at attracting more Foreign Direct Investments (FDI) into Nigeria. The Programme Manager of the NGFCP, Federal Ministry of Petroleum Resources, Justice Derefaka, said the US had indicated interest and sought to know more about the gas flare commercialization drive being pursued in Nigeria.
As reported some few months ago, the NGFCP has the potential of generating approximately $3.5bn of inward investment, with the potential Gross Domestic Product (GDP) impact estimated at over $1bn per annum.
As noted by Derefake, it was on the basis to achieve the set target, that they issued letters of qualification to 205 firms interested in the project. The report stated that over 850 interested parties had registered their interests in the programme, while 238 applicants had submitted Statements of Qualification (SOQ) in response to the Request for Qualification published by the Department of Petroleum Resources. A total of 238 SOQ documents were evaluated in accordance with the provisions of applicable regulations, guidelines and standard Department of Petroleum Resources (DPR) practices for bid evaluation and were adjudged either a ‘pass’ or ‘fail’ status. “Following a rigorous exercise conducted in line with established protocol and using the electronic evaluation tool, 205 applicants emerged successful, attaining a ‘pass status’, while the remaining 33 applicants did not meet the minimum requirements and thus attained ‘fail status’.”
On the latest subject development, it was gathered that the United States Government, through the US Commercial Service in Lagos, Nigeria, had requested that the NGFCP be explained fully at a three-day business forum entitled, ‘Discover Global Markets: Powering and Building the Middle East and Africa’, holding in Houston, Texas this month. As we all know, Flare gas is essentially Associated Gas (AG) that is produced with crude oil, as they both come out of the ground. But flare gas pollutes the environment, causing sickness and other environmental hazards, particularly in locations where oil companies operate such as the Niger Delta Region.
Derefaka stated that the opportunity to present the NGFCP to the United States Government and investors was a huge one for Nigeria in the pursuit of gas flare commercialization. He noted that the NGFCP would boost Liquefied Natural Gas (NLG) production; increase power generation, among others, when fully implemented. The NGFCP manager said, “It could potentially unlock two to three liquefied natural gas trains, around 3000 Megawatts (MW) of electricity generation as well as generate about 600,000 metric tonnes of Liquefied Petroleum Gas (LPG) per year, giving six million households access to clean energy through the LPG. The programme could 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.”
The former Technical Adviser, Refineries, Gas, Power and Downstream Infrastructure to the Minister of State for Petroleum Resources, Rabiu Suleiman, also stated recently that a lot of companies had been showing interest in the commercialization programme. According to him, the Federal Government has received statements of qualification from 240 firms, from which 205 parties have made the final screening.
With the elaborated prospects of what the NGFCP initiative can bring to Nigeria, especially with the interest being shown by the US Government and its Investors, we strongly believe that this project at the long run, would change the face of the Nigerian extractive industry, particularly for the good of the locals and people of the Niger Delta region that bears the brunt of the industry. It is therefore, 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. We once again urge 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