DPR shortlists 200 firms to capture, commercialise flared gas

[Edoman]

DPR shortlists 200 firms to capture, commercialise flared gas
February 18, 2020

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THE Department of Petroleum Resources (DPR) has shortlisted 200 companies out of 800 that applied to take over the flare sites spread across the Niger Delta region to reduce its negative effect on the people and environment.

Its Director and Chief Executive Officer, Mr. Sarki Ahmed, stated this in Lagos yesterday at a conference organised for Nigeria Gas Flare Commercialisation Programme (NGFCP) bidders.

Ahmed said the NGFCP bidders’conference was to enable the Department and the bidding companies interface on how to reduce the 320 billion cubic feet of gas (BCF) being flared as at end of 2019.

The DPR said it is working on 45 gas flare sites out of the 178 sites identified that would be transferred to the bidders while it continues to work on more.

According to Ahmed, the NGFCP was launched in 2016 and it is designed as the strategy to implement the policy objectives of the Federal Government to end gas flaring with potential enormous multiplier effect and development outcomes for Nigeria.

He noted that the objective of NGFCP is to eliminate gas flaring through technically and commercially sustainable gas utilisation projects developed by competent third party investors who have been invited to participate in a competitive and transparent bid process. The 200 bidders here were drawn from a pool of 800 who had expressed interest to manage about 178 gas flare sites.

He stated that in selecting the 200 bidders, careful consideration was given to their capacity, quality of service, track record and ability to deliver on set targets. He assured that there are other flare sites which are coming on board, adding this was just the first stage of the bidding round to be followed by others in due course.

According to him, Nigeria is the first country to have taken the bull by the horn through its NGFCP initiative aimed at putting an end to gas flaring, adding that the number of bidders attest to the fact that investors across the globe are interested in Nigeria.

The DPR chief stated that Nigeria having ratified the Paris Climate Change Agreement, and also a signatory to the Global Gas Flaring Partnership (GGFR) principles for global flare-out by 2030 has committed to a national flare-out target by year 2020.

He said: “It is worrisome that of the 800 billion standard cubic (SCF) of gas processed daily, only 17 per cent goes into the domestic market while 11 per cent is still being flared. 

The 11 per cent of gas that is flared is what we are now set to take out, and it is part of Nigeria’s commitment to the Paris Climate Change agreement, which we signed in 2015.This will launch Nigeria into the global perspective that we are committed to the promise that Mr. President took for the entire people of Nigeria”