FG Moves to Convert Gas Flaring to LPG Use, Awards 49 Contracts For Commercialisation
- The Nigerian government, via the Nigeria Upstream Petroleum Regulatory Commission, has awarded contracts to convert flared gas to commercial use
- The agency said it has awarded 49 gas flaring contracts for the commercialisation and conversion of gas
- The chief executive officer of NUPRC said the step will reduce gas shortages and allow gas utilisation for various reasons.
Pascal Oparada has over a decade of experience covering Tech, Energy, Stocks, Investments, and Economy.
The Nigerian Upstream Petroleum Regulatory Commission has awarded 49 flaring gas sites for commercial use to combat gas flaring and utilise gas in Nigeria.
The agency's Chief Executive Officer (CEO), Gbenga Komolafe, disclosed this recently at the ongoing 8th Sub-Saharan Africa International Petroleum Exhibition and Conference in Lagos organised by the Petroleum Technology Association of Nigeria.
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Nigeria's gas production to rise in 5 years
The NUPRC boss said that the move is part of an effort to deepen Nigeria’s gas market and ensure decarbonisation of upstream operations.
He said the NUPRC awarded 49 flare sites to successful bidders for gas commercialisation via the Nigeria Gas-Flare Commercialisation Programme.
According to him, the step will reduce gas shortage and allow gas utilisation for various reasons in the oil and gas sector.
BusinessDay reports that a report by the National Oil Spill Detection and Response Agency (NOSDRA) revealed that 275.2 million standard cubic feet of gas flared daily in 2023.
NOSDRA revealed that gas production is projected from eight billion cubic feet in 2020 to 12.2 cubic by 2030 and is driven by major projects such as LNG train-7 and train-8, Nigeria Morcco pipeline, the Ajaokuta-Kaduna pipeline, the national gas pipeline project and many other gas projects across the country.
This comes as cooking prices and gas have risen steadily over the last three months as Nigerians battle high energy costs.
FG to reap from rising crude oil prices
The development comes as the price of Brent Crude rose to $83.19 barrels on Tuesday, February 13, 2024, an increase of $1.19 compared to its cost the previous day, according to data from the Nigerian government, showing that the country’s output rose to 1,426,574 barrels per day in January 2024.
The gain in crude oil price and the increase in Nigeria’s output would lead to more Forex earnings for the country, which has battled FX scarcity for months now, Legit.ng reported.
In its latest crude oil condensate data, the Nigerian Upstream Regulatory Commission (NUPRC) said the country’s output increased by 91,476 barrels per day in January 2024 compared to the production figure of 1,335,098 barrels per day.
The NUPRC figures showed that with the addition of condensate, Africa’s largest oil producer’s output rose to 1.64 million barrels per day in January 2024, up from the 1.55 million barrels per day recorded in December 2023.
The Nigerian government has been trying to increase the country’s oil production, reduce pipeline vandalism and meet the oil production quota approved by the Organisation of Petroleum Exporting Countries (OPEC).
Punch reported that the Chief Executive of NUPRC, Gbenga Komolafe, stated this on Tuesday, February 13, 2023, saying that the commission has adopted measures to tackle challenges facing the oil and gas industry and boost production.
The report shows the cheapest, highest prices
Legit.ng reported that the National Bureau of Statistics has revealed that Nigeria's average price for refiling a 5kg cooking gas cylinder hit N4,828.18 in November 2023.
This represents a 5.82% increase compared to the N4,562.51 average price recorded in October 2023.
While on a year-on-year basis, cooking gas prices increased by 6.13% from N4,549.14 in November 2022.
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Source: Legit.ng
