• Wednesday, February 21, 2024
businessday logo


Nigus, Chinese firm sign $1bn deal to boost gas flaring

Oil to become US single largest export product for the first time ever

Nigus International, a Nigerian firm has signed a $1 billion agreement with Beijing Zhogmin Xinjunlong New Energy Technology Company Limited, a Chinese firm, to finance and boost solutions for gas flaring in Nigeria.

According to the News Agency of Nigeria, the signing took place on Friday in Abuja by the national directive from President Bola Tinubu. The collaboration with the Chinese firm is focused on integrating its cutting-edge technology to convert flared gas for commercial use.

Read Also: Energy Transition, CNG? – Whither Nigeria?

“The joint venture is about NIGUS, as a renewable energy company, joining forces with the technology that allows us to bring a clean climate economy to Nigeria and create value from what we are wasting at the moment to generate pricing energy,” Malik Ibrahim, chief executive officer and chairman of Nigus, said.

He said the innovative technology is poised to generate Gas-to-Liquid (GTL) products such as synthetic diesel to enhance the energy mix, Liquefied Natural Gas for export, and Liquefied Petroleum Gas, among other advancements. “We seem not to be contributing to the carbon footprint, we flare a lot of our gas, and 90 percent of what we produce in Nigeria is being flared, not utilizing the gas.”

Read Also: Underinvestment, crude theft fetter Nigeria’s 2023 energy gains

“We are bringing to play a very modern, state-of-the-art technology by joining forces with China to create wealth and carbon neutrality and then generate lower-price energy.” Ibrahim added that the project is to demonstrate the president’s wish to utilise flared gas and that it will put his wishes into action.”

“The GTL will allow us to turn the gas into a liquid, to create LNG, the paradigm shift is that we will be able to imbed the technology where it is needed rather than adding infrastructural cost.”

Yung Ruming, chief executive officer of Beijing Zhogmin Xinjunlong New Energy Technology Company Limited noted that the company’s preparedness for the partnership, saying that their technical team and equipment would be mobilised to bring the project to fruition.