The Federal Ministry of Petroleum Resources has ascertained that over 700 firms have registered for the Nigerian Gas Flare Commercialization Programme [NGFCP] to jostle for 178 gas flare sites located in the Niger Delta.
This resulted because of a call for interested bidders to bid for gas flare sites by the Ministry.
Two years ago, the Federal Government announced the commencement of the verification of gas flare sites across the country, and had discovered that there were at least 178 sites where gas was flared by various oil companies as opposed to 140 sites listed in the past.
The ministry explained that the program would attract over $3.5 billion worth of investments to Nigeria to achieve the gas flare commercialization targets by 2020, and a potential annual revenue and Gross Domestic Product (GDP) impact of around $1billion.
Mr. Justice Derefaka, the commercialization Programme Coordinator of the Nigerian Gas Flare Commercialization Program in the Ministry of Petroleum Resources, stated that the verification exercise was conducted in conjunction with the World Bank, United States Agency for International Development, USAID, and the Canadian government.
Derefake explained that the essence of embarking on the verification exercise was to address issues of bankability and the need to attract investors and financiers to the gas flare commercialization.
“If harnessed, we could power two to three LNG trains and if used for power, we could generate about 3,000MW of electricity.”
The ministry said that the site is the first market-driven programme undertaken on this scale globally, which means bidders will have the flexibility of choosing which flare sites to bid for, the gas price, and the end market or gas product, as well as the technology to be used.