The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has issued permits to 28 companies for the flaring of gas, with a projected $2 billion investment to follow. This move is part of a broader national effort to commercialize flare gas and reduce environmental impact, transforming it from a long-standing environmental liability into an economic asset.

NUPRC Unveils Gas Flare Access Programme

At the Permit to Access Gas Flare Issuance Ceremony in Abuja, NUPRC’s CEO, Engr. Gbenga Komolafe, outlined the ambitious goals for the National Gas Flare Commercialization Programme (NGFCP). He revealed that the program is expected to generate up to $2 billion in investments and create over 100,000 direct and indirect jobs across the country.

Komolafe emphasized the critical role of the programme in addressing Nigeria’s long-standing gas flaring problem while boosting the country’s energy capacity and economic development.

Flare Gas Utilization to Drive Clean Energy and Electricity Generation

According to Komolafe, the programme will also yield significant environmental benefits, including the production of approximately 170,000 metric tons of LPG annually, enough to provide clean energy access to about 1.4 million households.

Furthermore, the captured gas is expected to contribute to the generation of 3,000 MW of electricity, a boost that will help address the country’s energy deficits. Komolafe emphasized the transformative potential of this initiative in creating sustainable energy sources for millions of Nigerians.

Strategic Collaboration with International Partners

In order to ensure the success of the initiative, NUPRC has deepened its engagement with international financiers and technology providers. Komolafe highlighted that NUPRC had completed thorough due diligence on all the companies that were awarded permits to ensure the technical feasibility and financial capability of the projects.

“We’ve worked diligently to ensure that the flare gas captured through these projects will be effectively commercialized, benefiting both the environment and the economy,” said Komolafe.

A Model for Global Energy Transition

The NGFCP is a pioneering initiative that will see Nigeria lead the way in turning flare gas into a valuable economic asset. Komolafe described the initiative as a globally unique, commercially viable model in which waste gas is transformed into an energy source, while also helping Nigeria meet its energy transition goals.

“We are not just addressing a local challenge; we are rewriting Nigeria’s energy story on a global stage. This initiative is fully aligned with the nation’s Energy Transition Plan, and it is a crucial pillar in our commitment to reducing emissions and contributing to a more resilient energy system,” Komolafe said.

Environmental Impact and Climate Benefits

The commercial capture and utilization of flare gas are expected to eliminate approximately 6 million tons of CO2 emissions annually, making the programme a significant contributor to Nigeria’s climate-positive future. This shift towards a more sustainable energy model is seen as a critical component of Nigeria’s efforts to enhance its global credibility in energy transition commitments.

By awarding 42 million scuf of flare gas to third-party developers, the NUPRC has opened the door to large-scale commercial operations that will turn an environmental challenge into a major economic opportunity.

A Bright Future for Nigeria’s Gas Sector

Komolafe concluded his speech by reiterating that the NGFCP is not just a policy initiative but a game-changer in the way Nigeria approaches its energy sector. By engaging stakeholders across the board, the NUPRC aims to ensure that the flaring of gas becomes a thing of the past, paving the way for cleaner, more sustainable energy production.

“This is the new energy narrative for Nigeria. We are building a future where flare gas, once a problem, becomes a critical part of our national wealth and energy security,” Komolafe said.