Nigerian govt launches bid for flare gas offtakers

7th December 2018

By: Marleny Arnoldi

Deputy Editor Online

     

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The Nigerian government is inviting parties with an interest in accessing and securing competitively priced gas to participate in an open and competitive bid process.

The government is implementing a Nigerian Gas Flare Commercialisation Programme (NGFCP) to make use of gas instead of it being flared.

The government states that the bid process represents a significant opportunity for domestic and international developers alike to participate in the largest market-driven flare gas monetisation programme undertaken on this scale globally.

Successful bidders will be granted title to the flare gas through a gas supply agreement with the government of Nigeria.

Currently, about 792-million standard cubic feet a day of flare gas is being distributed over 178 flare sites.

Interested parties can register their interest on the government’s NGFCP portal and then follow the qualification and bidding processes.

Nigeria has the ninth-largest gas reserve in the world, with proven reserves of about 199-trillion cubic feet. However, a significant volume of associated gas, produced with crude oil, is being flared. Nigeria is also one of the world’s largest gas-flaring countries.

There is strong political will to harness these gas resources and end flaring by 2020.

The government stated that any party with the capacity to use flare gas is welcome to apply. Such party will need to demonstrate project development experience and proposed proven technology in commercial application. Parties also need to demonstrate technical and commercial capacity.

Parties need to apply before January 20, following which a shortlist of candidates will be announced during the first quarter, as well as an issue of request for proposal.

The Nigerian government hopes to receive proposals from the bidders during the third quarter, and plans to select the preferred bidder before the end of the third quarter.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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