The federal government’s efforts to end gas flaring and convert wasted gas into economic value are facilitating the implementation of a multi-million-dollar flare gas-to-energy project by a Dutch energy company in Rivers State. Energy Ventures B.V. is the parent company of Africa Gas Technology Company Limited, established in Nigeria to develop the flare gas-to-power project.
A delegation from the Netherlands, led by Energy Ventures B.V. Chief Executive Officer, Herbert Okibe, visited the project site at Agbada 2 in Rivers State, and held discussions with the leadership of the Port Harcourt Electricity Distribution Company on the proposed project and electricity distribution. Okibe commended President Bola Tinubu’s administration for putting measures in place to accelerate the elimination of gas flaring.
The Petroleum Industry Act and regulatory initiatives of the Nigerian Upstream Petroleum Regulatory Commission are driving the elimination of gas flaring in Nigeria. Okibe cited the Commission’s programme requiring oil and gas companies to eliminate routine gas flaring and commercialise the resource as a key factor in creating opportunities for projects such as the Agbada initiative.
The project has completed its Environmental Impact Assessment, which the Ministry of Environment approved. Okibe said the project had recorded significant progress due to regulatory and financial support from the Federal Government and the Dutch Government, particularly policies aimed at eliminating gas flaring and turning the wasted resource into electricity and cooking gas.
The Agbada 2 project is designed to harness about five million standard cubic feet of gas per day from flaring operations associated with Heirs Energy and convert it into electricity or liquefied petroleum gas for consumers in the surrounding communities. The project is expected to serve as a pilot for similar developments in Nigeria and other parts of the world.
Nigeria has more than 100 locations where significant volumes of gas are flared, with serious environmental consequences. The project site has had gas flared for over 60 years, causing pollution, sickness, and respiratory problems. Okibe said the project was a small step to correct the environmental damage.
The project has secured regulatory approval from the Midstream and Downstream Gas Regulatory Agency and obtained the licence to establish the gas plant. The company has obtained the green light from the Port Harcourt Electricity Distribution Company to engage the Nigerian Electricity Regulatory Commission for the necessary permit.
Key points
- The project is expected to cost tens of millions of dollars and will be financed through a combination of private and government-backed funding.
