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Following deep reflections about how much gas flaring is costing the economy, President Muhammadu Buhari has approved the Flare Gas (Prevention of Waste and Pollution) Regulations 2018, to be implemented under the National Gas Flare Commercialisation Programme (NGFCP).

“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 Justice Derefaka, NGFCP programme manager.

In an exclusive interview with THISDAY, Derefaka 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.

With regards to the regulation, he said: “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 3, 2018.”

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. Read more: Government to take action against gas flaring, say experts

Gas flaring mechanism

Derefaka had previously stated that if flared gas was properly exploited, it could create 300,000 jobs, produce 600,000 metric tonnes of Liquefied Petroleum Gas per annum, as well as generate up to 2,500MW of electricity from new and existing power stations.

Media quoted him saying that approximately 700 million standard cubic feet per day of gas is being flared at 178 flare sites in the country, while about $3.5 billion worth of inward investments is required to accomplish the country’s flare gas commercialisation targets by 2020.