Komolafe: Captured Flared Gas to Be Deployed in Power Generation, Fertiliser Production, Others

•Ekpo says GSPA for $3.8bn Brass Methanol Project to be executed by May

Emmanuel Addeh in Abuja and Peter Uzoho in Lagos

The Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mr Gbenga Komolafe, yesterday stated that captured  flared gas from the proposed Nigerian Gas Flare Commercialisation Programme (NGFCP) will be deployed for electricity generation, fertiliser and methanol production as well as feedstock for local industries.

Speaking at the NGFCP Investors’ Forum in Abuja, Komolafe said the meeting was convened to bring flare site awardees, technology providers and financiers together for the mutual goal of eliminating flared gas and improving environmental sustainability.

He said that through the NGFCP, flare gas sites were awarded to competent third-party companies who are to harness the resource for value derivation, reiterating the commission’s commitment to the successful execution of the programme.

Komolafe stated that this would help to actualise the attainment of Nigeria’s pledge to end routine gas flaring within this decade and contribute to the reduction of global emissions.

The programme is being executed in conjunction with the United State Agency for International Development (USAID) and Power Africa – Nigeria Power Sector Program (PA–NPSP).

“The opportunity before us is immense as the captured flared gas can be used for electricity generation, fertiliser and methanol production and feedstock for local industries.

“These, in addition to improving host community relations, environmental sustainability, building local content capacity, creating employment opportunities, and encouraging increased capital inflow to the sector are some of the programme’s benefits to the country.

“Through the NGFCP, the barrier to entry into our complex industry is lowered for many proven small and medium scale local and international players,” he assured.

He stressed that the forum represents a unified commitment to decarbonisation and achieving net zero emissions.

 Together, he noted that participants were driven by the imperative to transform wasted energy into productive solutions, positioning Nigeria as a leader in sustainable practices.

 According to him, the NGFCP represents a comprehensive triumph that transcends typical business outcomes, delivering substantial environmental, social, and economic benefits.

He assured that requisite due diligence had been carried out on all award holders and remarkable progress had been made to ensuring that proposed projects are bound to achieve measurable success thus demonstrating tangible benefits of our initiative.

Meanwhile, the  federal government has announced that the Gas Supply and Purchase Agreement (GSPA) to support the Final Investment Decision (FID) for the Brass Methanol Project is to be executed by May, 2024.

Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo announced this yesterday after a meeting held with key stakeholders of the project in Abuja, according to a statement by his spokesman, Louis Ibah.

Ekpo said the meeting was to confirm adequate gas supply to the Brass Methanol Project by the NNPC/Shell/TotalEnergies/NAOC Joint Venture (JV), as well as determine the next steps to conclude and execute the GSPA and mature the phase 2 of gas supply to the project.

Present at the meeting were the Head of Joint Venture (JV), Investment Management, NNPC Upstream Investment Management Services, Mr. Olanrewaju Igandan; Deputy Managing Director, Nigerian Agip Oil Company (NAOC), Mr. Richard Orianzi; Managing Director, Shell Petroleum Development Company Nigeria, Mr. Osagie Okunbor; Managing Director of Brass Fertiliser and Petrochemical Ltd, Mr. Ben Okoye, among others.

 Ekpo informed the gathering of Tinubu’s strong interest in resolving issues relating to gas supply to the Brass Methanol Project.

According to the minister,  the president was passionate about the speedy kick off of the project so that it could bring in the much needed FDI with attendant economic benefits to the country.

“Mr. President is very passionate about this project and wants something positive to happen in respect of the Brass Methanol project before the end of May this year,” Ekpo said.

The Brass Methanol Project, located on Brass Island in Bayelsa State, is sponsored by Brass Fertiliser & Petrochemical Company Limited (BFPCL).

The $3.8 billion project is made up of a gas processing plant, a methanol production and refining plant, product export facilities, among others.

At the end of the meeting, Ekpo announced he had successfully resolved the GSPA issue and that it would be executed by May this year.

“The NNPC/SPDC JV partners are now fully committed to uninterrupted gas supply for the development of the Brass Methanol project,” Ekpo added.