On-president-buhari-led-federal-governments-nigerian-gas-flare-commercialization-programme-ngfcp-to-improve-electricity-generation-from-gas-wasted-by-oil-companies
September 7, 2020 | News
ON PRESIDENT BUHARI-LED FEDERAL GOVERNMENT’S NIGERIAN GAS FLARE COMMERCIALIZATION PROGRAMME (NGFCP) TO IMPROVE ELECTRICITY GENERATION FROM GAS WASTED BY OIL COMPANIES
With recent report revealing that the volume of gas that is wasted by oil companies operating in Nigeria is enough to generate about 3,000 Megawatts of electricity, but that the Federal Government’s Nigerian Gas Flare Commercialization Programme (NGFCP) was specifically designed to address the massive revenue losses caused by gas flaring in Nigeria, particularly in the Niger Delta region; we believe this is a welcome development that deserves all the support and praise from the Nigerian people to the President Muhammadu Buhari-led Government.
It was also revealed in the said online report by Punch Nigeria as published on February 24, 2019, that the amount of gas flared by oil companies operating in Nigeria was sufficient to power two or three liquefied natural gas trains if harnessed. All of this was made known by the Programme Manager, NGFCP, Mr. Justice Derefaka, of the Federal Ministry of Petroleum Resources (FMPR), who stated that about 22 million tonnes of Carbon IV Oxide was flared by oil firms in Nigeria, adding that the worth of the wasted gas was about $500m (N153bn at the official exchange rate of N306.8/dollar). He said: “For the 22 million tonnes CO2 we emit, we lose approximately $500m emission credit value. If harnessed, we could power two to three LNG trains and if used for power, we could generate about 3,000MW of electricity. Additionally, the gas could be put to good use and potentially displace other fuels like coal and diesel that generate higher emissions per energy unit.” Derefaka lamented that the country had been burning money that would have been used to generate wealth, create employment and also generate electricity for the people.
The FMPR stated that consistent with Nigeria’s commitments for the reduction of greenhouse gas under the Paris Climate Change Agreement, the NGFCP would reduce Nigeria’s CO2 emissions by approximately 13 million tonnes per year, which could be monetized under an emission credit or carbon sale programme. It stated that Nigeria submitted its first nationally determined contributions, which included gas flaring reduction as a mitigation measure to combat global warming while committing to a national flare-out target by the year 2020.
It was only few days back that we reiterated the report which noted that the ongoing Nigerian Gas Flare Commercialization Programme of the Federal Government will attract $3.5bn worth of investments to Nigeria, and that the burden of gas flare will eventually be addressed in few years to come. We applauded the development because finally, Nigerians are witnessing something different from the usual gas development and gas-flare-end politics played by past Governments. All that we are urging the President Muhammadu Buhari-led administration once again, is that its NGFCP initiative should not end up on paper or in the book shelves like we have witnessed with past administrations. But rather, President Buhari should ensure that its ongoing Gas Flare Commercialization, which will liberalize the development of the nation’s gas sector, actually becomes a ‘reality’. To this end, the Federal Government should ensure that not even its agencies like the Department of Petroleum Resources (DPR), should stand as a bottleneck to the prompt realization of this objective as intended by the Federal Government of Nigeria. The Federal Government should invest on this neglected aspect of the nation’s gas sector with all that is required to make it a reality.
Without a doubt, the Nigerian Power/Energy sector has generally performed far below expectations in all the past Nigerian Governments. In fact, it is appalling that Nigeria’s per capita electricity consumption is amongst the lowest in the world and far lower than many of other African countries. The saddest part is how every Nigerian Government, rather than do the needful in improving this essential sector for the benefit of Nigerians and the nation’s economy, they prefer to play politics and public propaganda; just like they do with every other sector. We are however glad that the President Buhari-led administration is trying to use its Nigerian Gas Flare Commercialization Programme to change the narrative in Nigeria’s power sector.
The truth is that, we cannot continue to be a country that is very rich in energy resources but poor in energy supply. We cannot continue to remain a “generator-driven economy” when we are blessed with abundant gas which is being flared. The Federal Government needs to liberalize the Nigerian gas development policy to accommodate more private investors participation in Nigeria’s gas development, especially since the NGFCP can become an important source of additional gas for improvement of the power sector.
Zik Gbemre.
We Mobilize Others to Fight for Individual Causes as if Those Were Our Causes
With recent report revealing that the volume of gas that is wasted by oil companies operating in Nigeria is enough to generate about 3,000 Megawatts of electricity, but that the Federal Government’s Nigerian Gas Flare Commercialization Programme (NGFCP) was specifically designed to address the massive revenue losses caused by gas flaring in Nigeria, particularly in the Niger Delta region; we believe this is a welcome development that deserves all the support and praise from the Nigerian people to the President Muhammadu Buhari-led Government.
It was also revealed in the said online report by Punch Nigeria as published on February 24, 2019, that the amount of gas flared by oil companies operating in Nigeria was sufficient to power two or three liquefied natural gas trains if harnessed. All of this was made known by the Programme Manager, NGFCP, Mr. Justice Derefaka, of the Federal Ministry of Petroleum Resources (FMPR), who stated that about 22 million tonnes of Carbon IV Oxide was flared by oil firms in Nigeria, adding that the worth of the wasted gas was about $500m (N153bn at the official exchange rate of N306.8/dollar). He said: “For the 22 million tonnes CO2 we emit, we lose approximately $500m emission credit value. If harnessed, we could power two to three LNG trains and if used for power, we could generate about 3,000MW of electricity. Additionally, the gas could be put to good use and potentially displace other fuels like coal and diesel that generate higher emissions per energy unit.” Derefaka lamented that the country had been burning money that would have been used to generate wealth, create employment and also generate electricity for the people.
The FMPR stated that consistent with Nigeria’s commitments for the reduction of greenhouse gas under the Paris Climate Change Agreement, the NGFCP would reduce Nigeria’s CO2 emissions by approximately 13 million tonnes per year, which could be monetized under an emission credit or carbon sale programme. It stated that Nigeria submitted its first nationally determined contributions, which included gas flaring reduction as a mitigation measure to combat global warming while committing to a national flare-out target by the year 2020.
It was only few days back that we reiterated the report which noted that the ongoing Nigerian Gas Flare Commercialization Programme of the Federal Government will attract $3.5bn worth of investments to Nigeria, and that the burden of gas flare will eventually be addressed in few years to come. We applauded the development because finally, Nigerians are witnessing something different from the usual gas development and gas-flare-end politics played by past Governments. All that we are urging the President Muhammadu Buhari-led administration once again, is that its NGFCP initiative should not end up on paper or in the book shelves like we have witnessed with past administrations. But rather, President Buhari should ensure that its ongoing Gas Flare Commercialization, which will liberalize the development of the nation’s gas sector, actually becomes a ‘reality’. To this end, the Federal Government should ensure that not even its agencies like the Department of Petroleum Resources (DPR), should stand as a bottleneck to the prompt realization of this objective as intended by the Federal Government of Nigeria. The Federal Government should invest on this neglected aspect of the nation’s gas sector with all that is required to make it a reality.
Without a doubt, the Nigerian Power/Energy sector has generally performed far below expectations in all the past Nigerian Governments. In fact, it is appalling that Nigeria’s per capita electricity consumption is amongst the lowest in the world and far lower than many of other African countries. The saddest part is how every Nigerian Government, rather than do the needful in improving this essential sector for the benefit of Nigerians and the nation’s economy, they prefer to play politics and public propaganda; just like they do with every other sector. We are however glad that the President Buhari-led administration is trying to use its Nigerian Gas Flare Commercialization Programme to change the narrative in Nigeria’s power sector.
The truth is that, we cannot continue to be a country that is very rich in energy resources but poor in energy supply. We cannot continue to remain a “generator-driven economy” when we are blessed with abundant gas which is being flared. The Federal Government needs to liberalize the Nigerian gas development policy to accommodate more private investors participation in Nigeria’s gas development, especially since the NGFCP can become an important source of additional gas for improvement of the power sector.
Zik Gbemre.
We Mobilize Others to Fight for Individual Causes as if Those Were Our Causes