The Nigerian government has taken a significant step towards harnessing the country’s gas resources, with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) issuing permits to access flare gas to 28 successful awardees. This move is part of the Nigerian Gas Flare Commercialisation Programme (NGFCP), which aims to transition the country’s upstream petroleum sector from environmental liability to economic opportunity.
According to the NUPRC, the issuance of the Permit to Access Flare Gas (PAFG) marks a pivotal shift towards market-driven solutions, unlocking economic opportunities, strengthening energy security, reducing emissions, and improving operational efficiency across the industry. The programme is expected to reduce carbon dioxide emissions by six million tonnes yearly, attract $2 billion in investments, and create over 100,000 jobs.
NUPRC Chief Executive, Engr. Gbenga Komolafe, stated that a total of 49 flare sites have been auctioned, with 42 bidders awarded the sites. Between 250 and 300 million standard cubic feet per day of currently flared gas will be captured and commercialised, eliminating approximately six million tonnes of carbon dioxide annually. This development is a significant step towards reducing the country’s greenhouse gas emissions and promoting sustainable energy practices.
The NGFCP is a key initiative aimed at reducing gas flaring in Nigeria, which has been a longstanding environmental concern. By commercialising flare gas, the government hopes to create new revenue streams, stimulate economic growth, and improve the country’s energy mix. The programme is also expected to attract foreign investment, create jobs, and promote local content development in the oil and gas sector.
The issuance of the permits is a significant milestone in the implementation of the NGFCP, and the NUPRC is working closely with the awardees to ensure a smooth transition and timely project execution. As the country moves forward with this initiative, it is expected to have a positive impact on the environment, the economy, and the energy sector as a whole. With the potential to reduce emissions, create jobs, and attract investments, the NGFCP is an important step towards a more sustainable and prosperous future for Nigeria.