Gas - NEWS AGENCY OF NIGERIA

Tosin Kolade
Feb, Thu, 2025

Nigeria’s gas flare commercialisation programme to unlock $2.5bn investment – NUPRC

160 total views today

By Emmanuella Anokam

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), says the Nigeria Gas Flare Commercialisation Programme (NGFCP) has the potential to unlock 2.5 billion dollars investment in oil and gas sector.

The commission is also set to hold its first Nigeria Upstream Oil and Gas Decarbonisation Forum in March, to align its upstream operations with global decarbonisation goals and carbon monetisation.

Gbenga Komolafe, the Chief Executive, NUPRC, stated this during the African Upstream Forum at the ongoing 2025 Nigeria International Energy Summit (NIES), on Wednesday in Abuja.

Komolafe, who spoke in a session entitled: “Imperative of Regulatory Efficacy in Optimisation of Upstream Activities,’’ said the NUPRC stood as a powerful catalyst for the growth, sustainability, and global competitiveness of the sector.

He said the gas flare commercialisation programme would also generate huge revenue and create significant number of jobs.

“As the global focus shifts toward a low- carbon future, NUPRC is embedding sustainability into seven upstream operations, mitigating environmental risks and protecting communities.

“Key actions include: Managing methane and GHG emissions; fostering energy efficiency and carbon credits, promoting investments in Carbon Capture Utilisation and Storage (CCUS) and Enforcing Environmental Social and Governance (ESG) goals,’’ he said.

He said the industry was contributing 95 per cent of foreign exchange earnings and 70 per cent to government revenue, unlocking employment opportunities, and positioning Nigeria as a formidable leader in the global energy arena.

“At the heart of NUPRC’s efforts is the growth of Nigeria’s hydrocarbon reserves and production in a cleaner manner for enhanced revenue generation.

“In the short-term, we have set new benchmarks for oil and gas production and significantly strengthening the nation’s energy security,’’ he said.

Komolafe said the commission was also committed to enriching domestic gas utilisation and expanding gas infrastructure to meet Nigeria’s growing energy demands.

The commission, he said would ensure that every Field Development Plan (FDP) included a firm commitment to fulfilling gas delivery obligations and increasing gas supply to the domestic market to meet rising local demand.

“As part of our plan to advance deep-water development, we will promote the creation of deep-water clusters, fostering synergies in facility use to unlock the vast potential of Nigeria’s deep-water resources, while reducing costs and leveraging economies of scale,’’ he said.

He said the commission was set to hold the maiden Nigeria Upstream Oil and Gas Decarbonisation Forum in March, 2025, adding that it would present its governance and regulatory framework for decarbonisation in the Nigerian upstream sector at the forum.

“This forum will provide a platform for key stakeholders to engage in meaningful discussions on decarbonisation and carbon monetisation, while allowing regulators, agencies, and companies across the globe to share their valuable insights and experiences.

“Nigeria’s success in the upstream oil and gas sector is anchored on a predictable and enabling regulatory environment.

“Through regulatory excellence, collaboration, and visionary planning, NUPRC is poised to guide Nigeria toward a future defined by energy security, economic growth, and environmental responsibility,’’ he said. (NAN)(www.nannews.ng)

Edited by Rabiu Sani-Ali

Lydia Beshel
Jan, Fri, 2025

Oil & Gas

FG reiterates commitment to Gas-to-power initiative

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CNG

By Thompson Yamput

The Federal Government has reiterated its commitment to the gas to power initiative.

The News Agency of Nigeria (NAN) reports that thr initiative, which was launched in 2021, aims to transform Nigeria into a gas-powered economy by 2030 through a series of policy reforms, infrastructure development, and investment attraction strategies.

Mr Mele Kyari, the Group Chief Executive Officer (GCEO) of Nigerian National Petroleum Company Limited (NNPCL, said this at the groundbreaking ceremony of the five mini-Liquefied Natural Gas (LNG) Plants in Ajaokuta, Kogi.

Kyari said the projects play a critical role in promoting economic growth and contributing to the nation’s Gross Domestic Product (GDP), while creating opportunities for gas commercialisation and supporting the Federal Government’s flare down initiatives.

He said that the Mini LNG facilities would ensure the efficient transportation of gas over long distances, providing a cleaner and cheaper source of energy to households,mobility, industries, and businesses.

“This is particularly important for regions that currently lack access to gas pipeline infrastructure.

“The company’s strides in the upstream and gas infrastructure projects were sequel to the unwavering support of President Bola Tinubu in utilising gas resources to fuel industrialisation, achieve energy security and foster economic growth and development.

Earlier, Gov. Ahmed Ododo of Kogi, thanked the federal government for locating the five Mini-LNG plants in the state.

Ododo described the decision as a step in the right direction in Nigeria’s march towards attaining energy security and economic growth.

“I wish to commend our President, Mr Bola Tinubu, NNPC Ltd and its partners,for finding Ajaokuta and Kogi state worthy of gas investments.

“It is our belief that the plants will unlock ample opportunities in investment, including direct and indirect employment for the state’s teaming population, hence our total support, ” Ododo said. (NAN)
edited by Sadiya Hamza

Philip Daniel Yatai
Jan, Fri, 2025

Oil & Gas

Nigeria’s CNG conversion capacity increases by 2,500% – NMDPRA

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By Emmanuella Anokam

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has said that the country’s Compressed Natural Gas (CNG) conversion capacity increased by over 2,500 per cent in 2024.

Mr Farouk Ahmed, Authority Chief Executive, NMDPRA, said this on Thursday in Abuja, at the inaugural Petroleum Industry Stakeholders’ Forum, organised by the Ministry of Petroleum Resources.

Ahmed said that NMDPRA supported the Presidential Compressed Natural Gas Initiative (PCNGI) by stimulating 186 new conversion centers which triggered the county’s conversion capacity.

“The NMDPRA will continue to collaborate with the PCNGI to ensure deployment of CNG infrastructure in major cities of Lagos and Abuja, up to 100,000 conversions, while collaborating with states to develop Nigeria Gas Vehicles (NGVs) in other areas.

“The development of CNG as a viable alternative to Petrol has been incentivised.

“These conversions alongside new buys have raised the Nigerian Gas Vehicles population to an estimated 30,000 to 50,000 vehicles and trucks, and it continues to grow daily.

“With over 400 million dollars attracted for investment in 86 and 65 new daughters and mother stations under construction respectively, Nigeria refueling capacity has therefore risen from 20 to 56,” he said.

Ahmed said that the collaboration between PCNGI, NMDPRA and Standards Organisation of Nigeria (SON) led to the development of standards and the NGV Monitoring System expected to be inaugurated this year.

“The NMDPRA also collaborates with the SON, the National Automotive Design and Development Council (NADDC) and the National Institute of Transportation Technology (NITT) in ensuring that our mobility CNG growth is achieved in a safe and sustainable manner,” he said.

The NMDPRA boss, however, listed some challenges facing the initiative to include establishment and operation of petroleum handling facilities without proper licensing, permits and authorisations.

He listed other challenges to include poor collaborations for Open/ third party access to facilities and lack of cooperation of some operators for an effective regulatory oversight, in line with the Petroleum Industry Act (PIA) provisions.

“We implore the industry to adhere to all regulatory requirements, especially as they relate to safety, efficiency, best practices, sustainability, consumer protection and community participation.

“As we progress into 2025, the NMDPRA will continue to consolidate on its successes for enhanced regulatory oversight.

“This will include the upgrade of our laboratories for enhanced product quality analysis and referencing, inter-agency collaborations, automation and sustainability in the industry,” Ahmed said. (NAN)

Edited by Emmanuel Afonne

Ismail Abdulaziz
Dec, Tue, 2024

Economy/Business

NUPRC boss seeks transparency, collective action to tackle corruption in oil, gas sector

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By Lucy Ogalue

Mr Gbenga Komolafe, the Commission Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has called for unwavering commitment to eradicate corruption, particularly in Nigeria’s vital oil and gas sector.

Komolafe made the call at a workshop organised by the commission to mark the International Anti-corruption Day on Monday in Abuja.

The News Agency of Nigeria (NAN) reports that the theme of the event is “United Against Corruption: Building Integrity for a Sustainable Future.”

Komolafe described the consequences of corruption, as a significant threat to the nation’s development and equity.

“Corruption deprives citizens of essential services, discourages investments, and erodes trust in public institutions, thus the importance of safeguarding the upstream petroleum industry.

He outlined transformative measures implemented by the NUPRC, such as the Oil and Gas Industry Service Permit (OGISP) portal, competitive bidding for petroleum licenses, and the HostComply platform, which have strengthened transparency and governance.

Komolafe praised the Anti-Corruption and Transparency Unit (ACTU) of the NUPRC for fostering a culture of integrity through awareness campaigns, system reviews, and whistleblowing mechanisms.

“These efforts have not only enhanced investor confidence but have also increased revenue inflows to the Federation Account,” he said.

Komolafe emphasised the importance of leadership in combating corruption, urging stakeholders, including government agencies, industry operators, and civil society, to unite in the fight against the menace.

“We must collectively ensure that Nigeria’s oil and gas resources become a blessing for all, not a privilege for a few. I urge Nigerians to embrace transparency as a personal and collective creed,’’ he said.

The NUPRC boss during the event recognised some outstanding staff members of the commission that had shown commitment to integrity with integrity awards.

The renowned Human Rights Activist and Senior Advocate of Nigeria (SAN) Femi Falana, on his part, challenged Nigerians to confront systemic corruption with bold reforms and decisive action.

Falana acknowledged the progress made by anti-corruption agencies like the ICPC and EFCC but emphasised that “corruption thrives where leadership lacks commitment.”

He called for a stronger political will to enforce existing anti-corruption laws.

Falana acknowledged the global complicity in perpetuating corruption, criticising Western nations for harboring stolen funds.

“The bulk of looted resources from Nigeria is warehoused abroad. Yet, these countries frustrate recovery efforts, betraying the ideals of the United Nations Convention Against Corruption,” he stated.

He also advocated for the redistribution of seized assets, suggesting that properties confiscated from corrupt officials be converted into affordable housing for Nigerian workers.

He reiterated the power of young Nigerians, particularly through social media, to drive anti-corruption campaigns, saying “If we can mobilise our youth to demand transparency and accountability, significant progress will be made”.

He also advocated for the redistribution of seized assets within the country, suggesting that properties confiscated from corrupt officials be converted into affordable housing for Nigerian workers.

Falana praised the NUPRC boss and its management for its transparency initiatives, urging other government institutions to replicate these efforts.

“Your leadership sets a precedent for fostering accountability and resisting undue influence,” he said.

Representing Dr Musa Aliyu, Chairman, Independent Corrupt Practices and Other Related Offences Commission (ICPC), Mr Adigun Olusegun, lauded the NUPRC for its proactive anti-corruption initiatives.

“The establishment of the Anti-Corruption and Transparency Unit (ACTU) within organisations like NUPRC ensures the implementation of preventive mechanisms, fostering an ethical workforce and addressing lapses in operational systems.

“It is therefore important to sustain these efforts. We encourage ACTU to remain steadfast in its mandate while urging management to continue its unwavering support,’’ Aliyu said.

Delivering a paper on “Understanding and Mitigating Corruption in the Workplace, Mr Chidi Orji of ICPC said corruption eroded public trust and compromised critical sectors such as healthcare, infrastructure, and economic development.

“Corruption does not just affect the poor or the powerless; it impacts everyone, including its supposed beneficiaries.

Citing examples of procurement fraud and regulatory capture, Orji called for more rigorous enforcement and transparent processes, particularly in sectors prone to exploitation.

He said there was the need for technology-driven solutions to minimise human intervention in regulatory processes.

“We must innovate and adopt systems that eliminate opportunities for unethical practices, especially in sectors like oil and gas, where the stakes are high.

“Leadership must lead by example and the fight against corruption begins with ethical behavior from the highest levels of management and cascades down through all organisational layers.

“Corruption does not pay, it affects us all, and only by standing united can we shape a future of integrity and accountability,” he said. (NAN)(www.nannews.ng)
edited by Sadiya Hamza

Philip Daniel Yatai
Oct, Sat, 2024

Oil & Gas

SPDC JV partners sign agreement for $3.5bn Brass fertiliser, petrochemical project

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By Emmanuella Anokam

The SPDC Joint Venture partners have signed a Gas Sales and Purchase Agreement (GSPA) for the $3.5 billion Brass Fertiliser and Petrochemical Company Limited (BFPCL) project.

The SPDC JV partners, comprising NNPC Ltd, Shell Petroleum Development Company (SPDC), TotalEnergies Ltd. and Eni would supply 270 million standard cubic feet of gas daily (270MMscfd), to develop the 3.5 billion dollar project in Bayelsa.

The 270MMscfd gas supply to BFPCL is the largest single GSPA to any domestic gas offtaker in Nigeria.

The signing of the agreement between the SPDC JV partners and BFPCL held on Friday in Abuja was supervised by the Minister of State Petroleum Resources (Gas), Mr Ekperikpe Ekpo.

Expo said it was expected that within the shortest possible time, the BFPCL and its partners would achieve Financial Close and commence actual construction of the methanol project.

He said the project would spur needed Foreign Direct Investment (FDI), and create thousands of jobs for the teeming population, while changing the fortunes of the host state and communities.

The minister urged all parties to operationalise the GSPA and realise the Brass Methanol Project to inspire more of such projects towards cementing Nigeria’s position as the Gas Processing Hub for Africa.

In his remarks, Amb. Nicholas Ella, Permanent Secretary in the ministry, said the project would generate more than 1.5 billion dollars annually from exports of fertilisers, petrochemicals and other gas-based products.

“This agreement represents a significant milestone in our ongoing efforts to monetise Nigeria’s vast gas reserves, which currently stand at over 209 trillion cubic feet (tcf).

“In addition to boosting exports, the project will reduce fertiliser imports by 30 per cent, saving Nigeria approximately 200 million dollars in foreign exchange annually,” he said.

Ella said it was projected to contribute around 600 million dollars annually to Nigeria’s Gross Domestic Product (GDP), with a broader economic impact of up to two billion dollars per year and growth in related industries.

“This initiative is closely aligned with Nigeria’s commitment to achieving zero routine flaring by 2030, and advancing the goals of the National Gas Policy by fully utilising our gas resources for sustainable development,” he said.

Gov. Douye Diri of Bayelsa, who expressed satisfaction with the project, said the state was open for investment and ready to ensure that youth were meaningfully engaged.

Represented by Ebieri Jones, Commissioner for Trade, Industry and Investment, Diri urged prospective investors to tap into its vast potential and peaceful business environment.

Also speaking, the Managing Director of the BFPCL, Dr Ben Okoye, emphasised the need to unlock Nigeria’s gas deposits promptly, citing the urgency to utilise gas before it becomes less relevant.

The NNPC Executive Vice President, Upstream, Mrs Oritsemeyiwa Eyesan, while commending the president on the executive order, an enabler for the success of the project, said the parties were aligned and ready to execute the project.

The partners also expressed readiness in implementing the project and thanked the minister for his pivotal role in breaking the impasse that delayed the signing of the agreement since 2015.

The event was attended by representatives of the partners including Mr Osagie Okunbor, Managing Director, SPDC; Mr Abiodun Afolabi, Executive Director, Strategy and Business, TotalEnergies; Mr Fabrizio Bolondi, Vice Chairman/Managing Director Eni and Mr Ed Ubong, Coordinating Director, Decade of Gas. (NAN)

Edited by Rabiu Sani-Ali