Federal-government-nigerian-gas-flare-commercialization-programme-ngfcp-surely-a-win-win-initiative-to-liberalize-the-country's-gas-sector

   
PRESIDENT MUHAMMADU BUHARI

 
DR. EMMANUEL IBE KACHIKWU (MINISTER OF STATE FOR PETROLEUM RESOURCES)

         
JUSTICE DEREFAKA (PROGRAM MANAGER NGFCP)
 
With all that had been happening so far as regards the President Muhammadu Buhari led Federal Government initiative to end gas flare in the country with its Nigerian Gas Flare Commercialisation Programme (NGFCP), being driven by the Federal Ministry of Petroleum Resources, we are certain that in few years to come, the issue of gas flare would have been substantially addressed in the interest of the nation's economy, especially the people of the Niger Delta region that bears the brunt of the extractive industry in the Niger Delta region.
This is hinged on the recent developments regarding the progress being made with the NGFCP initiative. Recently, it was revealed via online publications by businessesday and others, that bidders in Nigeria’s gas flare commercialisation programme, will have the flexibility of choosing which flare site to bid for, how much they wish to buy the flared gas from a floor price of $0.25c/1000scf, the end market or gas product, as well as the technology to be used. According to the said publication, Justice Derefaka, the program manager of the NGFCP, made the revelation. There have been concerns over how to evacuate gas from flare sites in remote Niger Delta locations to industries outside the region and the practicality of building gas gathering infrastructure in a volatile, often dangerous Niger Delta tarrian, which could derail expectations of bidders to recoup their investments.
In response to these concerns, Deraka, according to the said report, expressed that prior to the launch of the programme, his team has conducted a research on ways bidders can transport and use the gas captured from flare sites for economic activities. In his words: "We found out that although pipelines present the most viable option for transporting gas, there are scalable, containerized, skid mounted/barge type 'plug & play' technologies', virtual pipelines and Compressed Natural Gas (CNG) trucks would be preferred for security and other reasons. So, these take care of issue of remoteness of gas flare sites and locations. Additionally, under the NGFCP, any preferred bidder and/or a would-be-gas-flare site. 'Permit Holders' is free to latch onto existing NNPC pipeline infrastructure." Derefaka also said that the Federal Government is offering flexible terms including a floor price of gas at $0.25c/100scf. Natural gas currently sells for $2.78/100scf in the international market allowing for higher returns.
Without a doubt, this is a good window policy that would encourage investors to take advantage of investing in this sector. In another related development, considering the fact that there are so many dangerous effects of gas flaring, it was noted that the time has come to do the needful, as has been done in other climes before now. Now, the win-win scenario that will play out if the leadership of the Nigerian Gas Flare Commercialization Programme (NGFCP), domiciled in the Ministry of Petroleum Resources, is allowed to drive the ongoing gas flare commercialization scheme to fruition. It is important to realize that all previous schemes to end gas flaring have been failing, but the tactical format and drive being deployed by the team will not only end the flaring and stop the associated health challenges, it will build an economic superstructure that will add financial values both to the Federal Government and the emerging investors.
Other facts gathered showed that over 100 companies have already indicated interest in commercializing the identified 178 gas flare sites across the oil rich Niger Delta. Currently, all roads will lead to the PTDF towers, Abuja, for the commencement of the SOQ Evaluation and Qualification process scheduled to start from Monday 15th April 2019 to Friday 24th May 2019 from 8:00am – 5:00pm daily. It is hoped that all concerned from the Minister of State for Petroleum Resources, Dr Ibe Kachukwu, the Perm Sec., new chairman of the NGFCP and the Program Manager, will be given the needed support and courage to drive the process to a successful conclusion so that while Niger Deltans will begin to breath fresh air, investors will make return on investment, gas availability and affordability will grow as government’s coffers will swell after all. This is the win-win situation Nigerians are yearning for, as far as gas flaring is concerned.
 
 
Zik Gbemre.
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