Abuja — President Muhammadu Buhari has approved the Flare Gas (Prevention of Waste and Pollution) Regulations 2018, to be used for the implementation of the National Gas Flare Commercialisation Programme (NGFCP), THISDAY learnt.
The NGFCP Programme Manager, Justice Derefaka, disclosed this to THISDAY.
Derefaka, had disclosed that Nigeria loses approximately $1 billion of revenue to gas flaring because it does not have the capacity to capture and commercialise flared gas in the country.
"We are pleased to inform you that His Excellency, Muhammadu Buhari, the President of the Federal Republic of Nigeria has approved the "Flare Gas (Prevention of Waste and Pollution) Regulations 2018" as the regulatory instrument that will underpin the implementation of the NGFCP," said Derefaka in an email to THISDAY.
He further explained, "We are also pleased to mention that we have completed the design of the key programme transactional, commercial framework and documentation. We therefore expect to announce the first bid round for the flare gas to the public within Quarter (Q) 3, 2018."
In April, had Derefaka stated that if flared gas was properly exploited, it could create 300,000 jobs, produce 600,000 metric tonnes of Liquefied Petroleum Gas (LPG) per annum, as well as generate up to 2500 megawatts (MW) of electricity from new and existing power stations.
According to him, approximately 700 million standard cubic feet per day (mmscf/d) of gas was flared at 178 flare sites in the country, while about $3.5 billion worth of inward investments was required to accomplish the country's flare gas commercialisation targets by 2020.
Following Buhari's approval of the guideline, Derefaka, indicated the NGFCP would roll out its programme with the expectation that investors would key into it.
The NGFCP by its design would be a market-driven mechanism to attract competent third-party investors from across the world to commercialise country's flared gas.
The flared gas would reportedly be available at a price the successful investors bid, for use as fuel and or feedstock in proven gas utilisation technologies. The bidding process will be carried out using a two-stage procurement process.
Meanwhile, the Nigerian Society of Engineers (NSE) and the Nigerian National Petroleum Corporation (NNPC) have pledged to work together to revive oil industry related projects that are critical to Nigeria's economic development.
NSE and NNPC decided on this partnership when the President of the NSE, Mr. Adekunle Mokuolu, recently led the leadership of the society on a courtesy call on NNPC's Group Managing Director, Dr. Maikanti Baru.
According to a statement from the NNPC, Mokuolu, said there was need for the corporation with its highly competent and experienced engineers and a rich track record of project delivery, to work closely with the NSE and other stakeholders to salvage important national projects like the Ajaokuta Steel Company which progress has stalled.
He said NNPC and Nigeria's entire oil industry could benefit greatly from the speedy completion of the Ajaokuta Steel Company, adding that it would reduce dependence on imported steel for the manufacture of pipes and other hardware required used in the industry.
Baru, who reportedly agreed with him, said the revival of projects like the Ajaokuta Steel Company would go a long way in accelerating and deepening Nigeria's local content law.