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posted 6 years ago
The Nigerian Federal
Government has extended the submission date for the first phase of the
licensing round for uptake of flared gas to February 20, 2019. Before now, the
deadline for registration and submission of Statement of Qualification
for the Request for the National Gas Flare Commercialisation Programme (NGFCP)
was January 20, 2019. However, according to Africa Oil & Gas Report, the
new date has been fixed for February 28, 2019, quoting the NGFCP Programme
Manager, Justice O. Derefaka.
Department of
Petroleum Resources (DPR) – an agency under the Ministry of Petroleum
Resources, said the government is working to utilise and commercialise flared
gas. It noted that the Federal Government has come up with the National Gas
Flare Commercialisation Programme (NGFCP) to harness the flared gas and put it
into productive use. Under the NGFCP, the Federal Government will seek
for qualified investors with financial, technical and technological expertise
to harness the flared gas.
According
to the DPR report, “National Gas Flare Commercialisation Programme (NGFCP) is
key to Nigeria’s flares-out agenda with a target for zero routine gas flaring
in Nigeria by 2020. The report said flared gas in Nigeria can attract $3.5
billion investments and enough to generate 2.5 gigawatts (Gw) of power or
produce 50 million barrels of oil equivalent (boe). It also noted that flared
gas in the country can produce 600,000 metric tonnes of liquefied petroleum gas
(LPG) per year, produce 22 million tonnes of carbon dioxide (CO2), feed
two-three liquefied natural gas (LNG) trains and generate 300,000 jobs.
It further noted
that although Nigeria’s gas flaring level is dropping, the quantity of gas
flared last year was as high as 324 billion standard cubic feet (bscf), which
is a worrisome volume. The report said about 888 million standard cubic feet of
gas was flared daily in 2017. This is despite Nigeria’s efforts at increasing
utilisation and commercialisation of flared gas over the years. It stated that
Nigeria still ranks the world’s seventh highest gas flaring country, adding
that there are about 139 gas flare locations spread across the Niger Delta both
in onshore and offshore oil fields. Flared gas constitutes about 11 per cent of
the total gas produced in the country, it added.
Derefaka
said other milestones of the NGFCP include the shortlist of qualified
applicants, which was to end by March 31, 2019; Issue of Request for Proposal
(RFP), which was limited to first quarter of 2019; Submission of Proposals and
Selection of Preferred Bidders, both of which were not expected to last beyond
the end of September 30, 2019.
Would be
bidders have been hoping for postponement of the submission deadline, largely
because the first announcement of the licensing round came in during the last
six weeks of 2018. The Nigerian Gas Flare Com-mercialisation Programme is the
first auction targeted at licensing of subsurface hydrocarbon property in 11
years. It is not a conventional licensing round. It is for uptake of natural
gas that is currently being flared in different sites in Niger Delta basin, he
said.
The government
expects bid winners to take over the flare sites, monetise the gas and boost
the micro and macro economy in the process. He was further quoted as saying “the
auction presents a significant opportunity for domestic and international
developers alike to participate in the largest market driven flare gas
monetisation programme undertaken on this scale globally. Bidders will have
flexibility of choosing which flare site (s) to bid for, determine the gas
price, and their end-use market or gas product, as well as the technology to be
deployed. Interested parties will need to demonstrate project development
experience and proposed proven technology, which we expect to be in commercial
application.”
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