DPR Engagement with Companies on Data Requirements for the Nigerian Gas Flare Commercialization Programme (NGFCP)

By: Kunle Abisoye

Upstream Division, Lagos Headquarters

Historical Background

The objective of the NGFCP is to provide a commercial approach to the elimination of routine gas flares by 2020 and drive positive social, environmental and economic impacts in the Niger Delta by mobilising private sector capital towards gas flare capture projects. A joint team comprising of DPR and MPR staff are working on the implementation of the programme with the assistance of consultants provided by the USAID and World Bank.

The programme seeks to develop a transparent market mechanism through a competitive bidding process for allocating of gas flares, under clear criteria, to competent third party investors using proven technologies in commercial application globally.

An end-to-end analysis of the spread of gas flares across all oil and gas facilities in the Niger Delta highlight the huge potential of commercialising most of the gas available at the flare sites.

Accordingly, the field data requirement that fits into the DNA of the programme design were identified and reviewed with the DPR prior to engagement with Operators on provision of the data.

 

Highlights of the engagement with operators

  • The goals and objectives of the NGFCP programme were clearly enumerated as creation of value for the country and its people, the environment, the Operators and the project stakeholders through elimination of gas flaring, reduction in carbon emission, partial substitute of existing fuel products with flare gas products at competitive prices
  • The engagement is focused on the need to ensure operators provide relevant, accurate, credible and representative data for the programme
  • The data requested from the operators is critical in identifying, designing, financing, building and operating environmentally, socially and economically viable flare gas capture projects
  • The data is also essential for Nigeria to develop a credible baseline used to calculate the amount of emission reductions the potential GFR project is likely to generate
  • The data request format was presented and reviewed with operators for clarification
  • It was announced that the DPR and the NGFCP are working on a procedure for gas flare measurement that will subsequently be shared with the operators and this shall be the procedure to be used by the Government during site measurement of flare data contracted to a reputable service provider
  • The operators were assured that fields where gas monetization/injection are operational or have been sanctioned as well as flare sites connected to gas gathering grid, shall be considered for exemption from the programme.

Feedback from Operators

The generality of operators expressed their support for the programme. However, it was recommended that the participating partnership of the operators should be considered and that the buy-in of the Chief Executive Officers (CEOs) of all operating companies should be secured for a seamless execution of the programme.

Operating companies have since started the submission of data as the deadline communicated earlier was 21st August, 2017.