Nigeria needs about 3.5 billion investments to stop gas flaring and as well meet the commer...ation targets by 2020, it was learnt yesterday.
The Program Manager, Nigerian Gas Flare Commercialization Programme (NGFCP), Office of the Minister of State for Petroleum Resources, Justice O. Derefaka, made this known in a presentation at the ?Gas Aggregation Buyers? Forum,? which the Gas Aggregation Company of Nigeria (GACN) organized in Abuja.
The Programme, according to him, has identified over 140 flare points that flare one billion Standard Cubic Feet daily (SCUF) collectively.
He said, if harnessed, these could provide ~450,000 Metric tonnes (MT) of liquefied petroleum gas (LPG) for over four million Nigerian households.
He said: ?Of this, 65 per cent of flare points are onshore whilst 20 of the 89 onshore sites are large enough to independently sustain a ~50MW gas turbine. With an investment of ~USD 3.5 billion, the NGFCP could create ~300,000 jobs and have a positive impact on the environment by eliminating ~20 million tons of CO2 emissions per year and providing clean energy to 6 million households. It could also generate ~2.5 GW of power and unlock ~600,000 Metric Tonnes of LPG a year. The NGFCP could reduce the risk of sabotage of facilities in the Niger Delta, by improving the quality of life and standards of living in the area.?
Derefaka said the Programme proposed that ?assuming around 65% of the flared gas volume meets a minimum monetization investment threshold, the NGFCP has the following potential: Overall investment: ~ US $ 3 ? 3.5 billion, Potential annual revenues: ~ US $ 0.5 billion.?
It also assumed that an average project size of US$ 40 MM, the NGFCP has a potential of triggering 89 projects for over a 1.5 ? two year period, could generate approximately 26,000 direct jobs (assuming an average direct labor force of 300 people per project) and approximately 300,000 direct and indirect jobs.