NGFCP: NUPRC Targets 500mmscfd Flare Gas, 6m Tonnes Carbon Emission Reduction

•To grow gas output from 7.0 bcfd in 2023 to 12 bcfd by 2030

Emmanuel Addeh in Abuja

Nigeria intends to reduce its flare gas volume by 500mmscfd and curb current carbon emission by as much as 6 million tonnes through the ongoing Nigerian Gas Flare Commercialisation Programme (NGFCP), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), has said.

Describing it as a major win in Nigeria’s energy transition pathway, the Chief Executive of the NUPRC, Mr Gbenga Komolafe, who spoke at the Nigerian Pavilion, UN Climate Change Conference in Dubai, United Arab Emirates, noted that this represents 50 per cent of current flare disposition in the country.

Komolafe’s speech was themed: “Driving Sustainable Upstream Operations to Achieve Just and Equitable Energy Transition.”

The commission chief executive said the organisation had intensified efforts towards eliminating flared gas, while arresting methane and other fugitive gas emissions, by commercialising 49 flare sites through the programme.

Further investment opportunities, he said, are also available in ongoing and future licencing rounds for oil and gas blocks, seismic acquisition on multi-client basis, development of deeper hydrocarbon opportunities, carbon markets, evacuation logistics and surveillance infrastructure.

Each of these areas, according to Komolafe provides a unique entry point for willing investors and are essential components of the national architecture for sustainable energy infrastructure development.

“This programme is a major platform for Nigeria to showcase its commitment towards zero emission by 2060. In this regard, as a commission we are happy to showcase at this forum that significant progress has been recorded in the implementation of the NGFCP.

“With the emergence of awardees, the successful entities are progressing towards the conclusion of commercial agreements and commencement of project execution.

“This is a major win in Nigeria’s energy transition pathway. Upon completion, we estimate a reduction of about 500 MMscfd of flare gas, representing 50 per cent of current flare disposition, which is equivalent of 6 million tonnes of CO2 emission per year,” he added.

He explained that these were the cardinal pillars of the Nigeria Energy Transition Plan (NETP) upon which basis the Nigerian government declared natural gas as transition or bridge fuel.

In the same vein, he disclosed that government has initiated the “Decade of Gas programme” to actualise the objectives of unlocking investments required to grow gas production from an average of 7.0 bcfd in 2023 to 12 bcfd in 2030.

According to Komolafe, this development will be driven by major projects such as NLNG Train 7 and 8, Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline Project and the Nigeria-Morocco Gas Pipeline, among others.

Based on projected gas demand, Komolafe stressed that significant opportunities for participation exist for both existing investors and new entrants.

To him, the expectation is that international investors would support Nigeria’s gas journey in its energy transition pathway, even while the country is implementing the green story in Field Development Plans (FDPs) to integrate decarbonisation measures.

He listed the incentives currently available in the system to include: Zero-hydrocarbon tax for deep water developments, reduced royalty rates based on production and terrains, and tax consolidation provisions, amongst others.

In the implementation of the Petroleum Industry Act (PIA), the commission, Komolafe said, is benchmarking its regulatory approaches with the best international standards targeted at achieving reduction in unit operating cost.

He added that other objectives include: Developing a transparent approach to hydrocarbon accounting, attaining operational efficiency and effectiveness in operations and achieving peace and harmony in the host community environment.

He further stated that Nigeria intends to increase its oil and gas reserves and production, reduce carbon footprint and attain net zero global emissions target as well as creating sanity and predictability in the system.

“It is important at this point for us at this forum as a commission to make a clarion call on the investors, multilateral organisation, international financiers, technical service providers and partner entities to collaborate with the commission and to enhance their support as flare-out projects are being consummated and developed.

“To this end, the commission calls on all well-meaning partners to deepen support for programme toward full value realisation through: Technical support, financing and funding, collaboration for carbon credit earning framework as a major climate action for Nigeria and capacity building,” he added.

Based on the Paris Agreement, Komolafe reiterated that Nigeria had set its Nationally Determined Contributions (NDC) in support of 2030 emission reduction targets for unconditional reduction of 20 per cent and conditional reduction of 47 per cent with international support in the form of financing, technology transfer and capacity building.