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FG shortlist 42 Firms for gas flaring commercialization scheme

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The 2022 Nigerian Gas Flare Commercialization Programme reached a milestone on Wednesday with the Federal Government issuing letters of award to 42 participating firms.

This announcement came via a statement from the Nigerian Upstream Petroleum Regulatory Commission, which is headquartered in Abuja.

The Nigerian Gas Flare Commercialization Programme is a strategic initiative aimed at curbing the longstanding problem of gas flaring in the country’s oil and gas industry.

Gas flaring not only contributes to environmental pollution but also represents a wasteful loss of valuable natural resources.

Therefore, the decision to award these letters underscores the government’s determination to transform this challenge into an opportunity for economic growth and sustainability.

The statement reads in part,

According to the NUPRC, the award letters are currently being sent to the successful entities through the appropriate channels.

During the third quarter of 2022, the NUPRC underwent a restructuring of the gas flare commercialization program and subsequently re-launched it.

This restructuring aimed to align the program with the newly enacted Petroleum Industry Act (PIA) and to better accommodate the current economic and operational conditions in Nigeria.

The commission attributed the considerable success achieved in the NGFCP bid process to a sequence of interactions and consultations with key stakeholders.

It said the stakeholders include domestic investors, international development agencies, oil and gas producers, technology providers and financial institutions.

In addition, the commission observed that, following the Request for Qualification issued in the final quarter of the previous year, there was substantial interest from 300 companies/entities.

These entities expressed their intent to either revalidate their pre-qualification status as existing participants or submit a Statement of Qualification as new participants.

According to the commission, after a rigorous evaluation process, they were authorized to reveal that 38 companies/entities had secured successful bids for the development of 40 stand-alone single flare sites, while four companies/entities were successful for nine cluster site developments.

The upstream regulator has given its approval for KPMG, a global network of professional firms, to collaborate with the commission in executing the award. This partnership aims to guarantee the successful achievement of the gas flare-out commercialisation process.

The commission expressed its heartfelt congratulations to the accomplished bidders who had demonstrated their competence and expertise.

In addition to this commendation, the commission earnestly encouraged these successful individuals or entities to diligently proceed with the subsequent phases of the program.

This included fulfilling the necessary requirements and obligations to obtain permits, as well as assuming the responsibilities of executing sustainable and profitable projects.

These projects were specifically designed to leverage flare gas as a valuable resource, aiming to not only reduce waste but also generate economic value through their implementation.

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