Firms Sign $1 Billion Gas Flaring Deal in Nigeria
By Yemi Olakitan
In order to finance and advance solutions for gas flaring in Nigeria, a Nigerian energy company NIGUS International, has entered into a $1 billion agreement with a Chinese form, Beijing Zhogmin Xinjunlong New Energy Technology Company Ltd on Friday.
According to Nature News Sources, the signing of this pact took place on Friday in Abuja by the national directive from President Bola Tinubu.
During the agreement signing, HRH Malik Ado Ibrahim, the Chief Executive Officer and Chairman of NIGUS emphasized that the collaboration with the Chinese company is focused on integrating its cutting-edge technology to convert flared gas for commercial use.
This innovative technology is poised to generate Gas-to-Liquid (GTL) products such as synthetic diesel to enhance the energy mix, Liquefied Natural Gas (LNG) for export, and Liquefied Petroleum Gas (cooking gas), among other advancements.
He said, “The joint venture is about NIGUS, as a renewable energy company, joining forces with the technology that allows us to bring a clean climate economy to Nigeria and create value from what we are wasting at the moment to generate pricing energy.”
“We seem not to be contributing to the carbon footprint, we flare a lot of our gas, and 90% of what we produce in Nigeria is being flared, not utilizing the gas.”
“We are bringing to play a very modern, state-of-the-art technology by joining forces with China to create wealth and carbon neutrality and then generate lower-price energy.”
“The project is to demonstrate the president’s wish to utilize flared gas, this technology will put his wishes into action.”
“The GTL will allow us to turn the gas into a liquid, to create LNG, the paradigm shift is that we will be able to imbed the technology where it is needed rather than adding infrastructural cost,”
The Chief Executive Officer of Beijing Zhogmin Xinjunlong New Energy Technology Company Ltd., Yung Ruming, stated the company’s preparedness for the partnership, saying that their technical team and equipment would be mobilized to bring the project to fruition.
Expressing gratitude to the Federal Government for entrusting the company with this opportunity, Ruming highlighted the longstanding positive relationship between Nigeria and China over the years.
He emphasized that the project would bring significant benefits to the Nigerian populace.
Gas flaring in Nigeria
In the first half of 2023 has reached an alarming rate as oil and gas companies in the country flared 138.7 million metric standard cubic feet of gas.
This represents approximately a 10% increase from the 126.1 million standard cubic feet (SCF) of gas flared in the first half of 2022.
This led to the emission of 7.4 million tonnes of carbon dioxide (CO2), valued at a rate of US$485.3 million. When converted, this amounts to a loss equivalent to N373 billion using the August 2023 rate.
In comparison, during the first half of 2022, 6.7 million tonnes of CO2 were emitted, incurring a cost of US$441.2 million, resulting in a loss equivalent to N338 billion.