Business - News - Oil & Gas - October 3, 2022

NUPRC unveils plan for Nigerian Gas Flare Commercialisation relaunch  

Says comprehensive audit of flare gas portfolio, facilities’ disposition across the industry, and in-depth assessment of the prevailing operational realities completed

By Bassey Udo

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is considering the relaunch of the Nigerian Gas Flare Commercialisation Programme (NGFCP 2022). 

The Programme, which was conceived in 2016 as one of the strategic initiatives of the Federal Government to drive the attainment of zero routine gas flaring in the country’s oil and gas industry by 2035 and net zero emissions by 2060 in the country, would be relaunched to align with the Commission’s mandate as enshrined in the Petroleum Industry Act (PIA), 2021. 

The NUPRC said the relaunch of the programme was  consistent with President Muhammadu Buhari’s declaration at the COP 26 in Glasgow in October 2021. 

The NUPRC Chief Executive, Gbenga Komolafe, who confirmed the planned relaunch said the Commission would leverage institutional experiences and the renewed focus of the PIA 2021, to steer the initiative to a successful conclusion in an accelerated manner. 

“A comprehensive audit of the flare gas portfolio and facilities’ disposition across the industry, as well as an in-depth assessment of the prevailing operational realities in producing areas and changes in the wider macro-economic environment has been carried out by the Commission towards charting the optimum path forward for the Programme, ” Komolafe said.

To this end, he said the Commission  has notified the public about the Programme Relaunch and release of the “Request for Qualification (RFQ)” to signal the commencement of the renewed bid process for NGFCP 2022. 

The Request for Qualification (RFQ) document, now available on NUPRC website, dedicated NGFCP website and NGFCP portal, he said, would provide updated guidelines to assist investors to package their Statement of Qualification (SOQ) submissions and enable them to proceed to the next phase of the Programme. 

He said the existing applicants would derive value from their previous endeavours on the NGFCP, and adding that all such applicants who previously submitted bids under the NGFCP would be deemed pre-qualified once they met the basic requirements for status validation as stated in the RFQ. 

The NUPRC boss said the NGFCP 2022 was a hybrid of opportunities – preserving value for existing Bidders and expanding avenues for new investors to participate in this first-of-its kind flare auction programme. “The auction process has been streamlined to enable an accelerated delivery schedule for this exercise with the announcement of winners planned for December 2022.

“This is therefore a call to all existing applicants, bidders, new investors, technology providers, equipment suppliers and the global investment community to take advantage of the immense opportunities that Nigeria’s flare gas offers for guaranteed end-to-end value,” he said. 

The Commission, he said, would continue to foster collaboration with well-meaning stakeholders to enable and promote growth of the Nigerian oil and gas sector for the benefit of operators, industry players, investors, and in overriding national interest.

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