Can NNPC really pull off its three-point strategy on gas flaring?
In the past three decades, Nigerians have consistently watched as successive governments made long term plans on how to end the issue of gas flaring without the will power to push such plans to its logically conclusion.
It is with such pessimism that they are viewing the recent Nigerian National Petroleum Corporation (NNPC) three-point strategy targeted at bringing to an end to gas flaring come 2020.
Nigeria was previously the worst gas flaring nation in the world after Russia, but a number of Clean Development Mechanism, (CDM), projects aimed at appropriate gas utilisation have helped the country improve its standing in the global gas flaring chart to the sixth position.
According to the strategy, NNPC would ensure non-submission of Field Development Plans (FDPs) to the industry regulator, the Department Petroleum Resources (DPR), without a viable and executable gas utilization plan, a move aimed at ensuring no new gas flare in current and future projects.
Maikanti Baru, Group Managing Director, NNPC, said that in the last decade, gas flaring in Nigeria had reduced significantly from 25 per cent to 10 per cent adding that the multi-pronged approach taken by the group would ensure a sustainable solution to the historical problem of flaring.
The development would not only see Nigeria dropping from being the second highest gas flaring nation in the world to seventh, it would also signify a major milestone in its gas commercialisation prospects.
The environmental effects and the economic losses of the gas flaring have remained a major concern and threats to many lives, particularly in the Niger Delta region.
Baru also disclosed that the firm would attract nothing less than $25 billion investments into the nation’s oil sector in the next 10 years.
Total flares have significantly reduced to current levels of about 800mmscfd and in the next one to two years, we would have completely ensured zero routine flares from all the gas producers,” he stated.
As reassuring as the strategies are, industry closer watchers remain to be convinced considering the nature of previous plans and the foot-dragging approach to implementation.
They opine that there are huge opportunities in the gas with the country expecting over $25 billion investments anticipated over the next 10 years.
Those who know in the gas space observe that the Nigerian petroleum industry as the largest and the most vibrant in Sub-Saharan Africa has lots of potentials, especially in the deep water and untapped gas resources.
Baru further said the other two strategies are a steady reduction of existing flares through a combination of targeted policy interventions in the Gas Master-plan as well as the re-invigoration of the flare penalty through the 2016 Nigeria Gas Flare Commercialization Programme (NGFCP) and through legislation, that is, ban on gas flaring via the recent Flare Gas (Prevention of Waste and Pollution) regulations 2018.
According to him, NNPC has embarked on the most aggressive expansion of the gas infrastructure network aimed at creating access to the market.
KELECHI EWUZIE