In a bid to combat gas flaring and effectively utilize gas in the country, the Nigerian Upstream Petroleum Regulatory Commission has awarded 49 flaring gas sites for gas commercialisation.
Gbenga Komolafe, chief executive officer of NUPRC, disclosed this on Tuesday during his speech at the ongoing 8th Sub-Saharan Africa International Petroleum Exhibition and Conference in Lagos, Nigeria, organised by the Petroleum Technology Association of Nigeria.
Komalafe said, “As part of the efforts to deepen our gas market and ensure decarbonization of the upstream operations, the commission recently awarded 49 flare sites to successful bidders for flare gas commercialization through the Nigeria Gas-Flare Commercialisation Programme.”
He said that this step will ensure the availability of gas, reduce the shortage of gas, and allow the utilization of gas for various purposes in the oil and gas sector.
“Through this initiative, more gas will be available for domestic gas utilization as LPG, fuel stop for power generation plants, fertilizer plants, petrochemicals, and exports.”
A report by the National Oil Spill Detection And Response Agency (NOSDRA) revealed that 275.2 million standard cubic feet per day of gas was flared in 2023.
According to the report, the gas flared in that period has the potential to generate 1.13 million megawatts (1,125 gigawatts) of power for the country.
However, Komolafe told the delegates at the event that the NUPRC is spearheading the national drive to achieve the zero-flare target by 2030 and net zero carbon emissions by 2060.
He also said, “The commission is ushering a new cause in the upstream petroleum sector, through its 10-year strategic plan unveiled in May 2023, and through its forward-thinking, technically and commercially viable regulations developed so far by the commission to support energy security and drive emission reduction.”
He projected an increase in gas production in the coming years, through various pipelines and projects.
“Gas production is projected to increase from 8bcf (billion cubic feet) in 2020 to 12.2bcf in 2030, driven by major projects such as LNG trade 7 and trade 8, Nigeria-Morocco pipeline, the Ajaokuta-Kaduna-Kano pipeline, the National gas pipeline project and many other gas projects,” he said.
“The importance of these is to showcase the huge opportunities in the gas business for both the existing investors and the new entrepreneurs in the Nigerian upstream sector,” Komlafe added.
