The Nigerian Upstream Petroleum Regulatory Commission has announced that it has granted gas flaring licenses to 42 firms as part of the 2022 Nigerian Gas Flare Commercialisation Programme (NGFCP). This announcement comes after a thorough bidding process and evaluation of proposals submitted by various companies/entities interested in the program. Out of the 300 companies/entities that expressed interest, 42 were selected as successful bidders, and they have been awarded 49 flare sites for development.
The NGFCP, which aligns with the provisions of the Petroleum Industry Act (PIA) and seeks to reduce gas flaring while promoting the utilization of flare gas for value creation, has attracted significant attention from both local and international stakeholders. Of the 49 flare sites awarded, 40 are designated for standalone single flare site development, while nine will be developed as clusters.
In case the preferred bidders fail to meet the stipulated terms and conditions, the Commission has also accorded “Reserve bidders” status to some companies/entities for corresponding flare sites. This ensures a backup plan if the preferred bidders cannot fulfill their obligations.
Successful bidders will now move forward with executing a suite of commercial agreements and making the necessary payments to obtain the Permit to Access Flare Gas. The Commission has partnered with KPMG to support the implementation of the awards, ensuring the success of the gas flare-out commercialisation process.
The NGFCP aims to harness flare gas for value creation, contributing to Nigeria’s sustainable energy goals and reducing environmental impact. Congratulations have been extended to the successful bidders, urging them to proceed with the final stages of the program.