When flared gas is properly exploited, it has the potential to create thousands of jobs, produce 600,000 MT of LPG per year and generate 2.5GW of power from new and existing IPPs.
This is according to programme manager, National Gas Flare Commercialisation Programme (NGFCP), Federal Ministry of Petroleum Resources, Justice Derefaka, reports the Guardian.
Speaking at the Nigerian Norwegian Chamber of Commerce (NNCC) Q1 2018 Business Roundtable Seminar held recently in Lagos, on "The Monetization of Gas: Perspectives and Opportunities in the Nigerian Gas Industry", Derefaka revealed that Nigeria currently utilises almost 700mmscf/d of gas for power production.
He said this could be doubled by capturing and commercialising flared gas, adding that about $3.5 billion worth of inward investments is required to achieve the country's flare gas commercialisation targets by 2020. Read more: Nigeria targets to end gas flare over next two years
Flare gas regulation
Derefaka revealed that a 'Flare Gas (Prevention of Waste and Pollution) Regulation 2018' is being finalised and will be issued shortly to underpin the implementation of the NGFCP, as gas flare reduction is a priority in the suite of federal government programmes for improving the environmental, health, social, economic and security problems in the Niger Delta region.
He stressed that the solution should not only benefit Niger Delta communities and positively contribute to the Nigerian economy, it must also present a bankable market opportunity for investors and lenders alike.
Also speaking at the same event, Ian Brown-Peterside, the managing director, Midstream, Seven Energy, said: “A robust and viable Gas-to-Power sector in Nigeria is critical to Nigeria's future economic growth, constant power supply will lead to growth across all sectors.”
Media cited Brown-Peterside stating that gas policy is not always clear and consistent.
He added that further sector challenges include commitment to payment terms in the gas to power business, noting that critical factors like co-operation and alignment between stakeholders, proper risk allocation across the chain to preserve investment, as well as clear fiscal incentives to unlock investment are required to enhance the potential and viability of gas to power.