END TO GAS FLARE IS STILL ON COURSE, AS FEDERAL GOVERNMENT PLANS HITCH-FREE ALLOCATION OF GAS FLARE SITES TO BIDDERS

It was just recently that reports revealed that the Federal Government has approved 205 applicants for its Nigerian Gas Flare Commercialization Programme (NGFCP), which was a great milestone towards ending gas flare, and opening doors for economic benefits to the Nigerian people through the liberalization of the gas sector.

In its bid to ensure that the NGFCP process in not delayed by anything, it was reported recently that the Nigerian Federal government has commenced the process to ensure a hitch-free allocation of gas flare sites to bidders who emerged successful in the bid stages of its market-based gas flare-out plan under the NGFCP initiative.

The Director of Special Duties in the Ministry of Petroleum Resources and Alternate Chairman of NGFCP, Mr. Andrew Ogu Agi, on behalf of the Permanent Secretary in the ministry, disclosed that the government would engage the successful bidders in a workshop to ensure a win-win closure to the deals. He explained in a statement that the bidders have been invited for the workshop expected to hold on August 19, 2019 in Abuja, and from where part of steps to the next stage of the NGFCP would commence.

The Program Manager of NGFCP, Mr. Justice Derefaka, stated that it would be centred on, “regulatory framework, incentives, best practices and understanding the Request for Proposal phase” to boost investors’ and qualified applicants’ appetite in the NGFCP. Derefaka noted that letters were sent to successful companies who applied for qualification package of the NGFCP, via submission of their Statement of Qualification (SOQ) and who are now set for the next stage of the scheme ahead of allocation of gas flare sites for resumption of gas recovery and end to associated gas flaring.

In his words: “You will recall that over 850 interested parties registered their interest in the NGFCP while 238 applicants submitted SOQs in response to the Request for Qualification (RfQ) published by the ministry of petroleum resources. And then total of 238 SOQ documents were evaluated in accordance with the provisions of applicable regulations, guidelines, standard industry best practices for bid evaluation, and were adjudged either a “pass” or “fail” status. Following a rigorous exercise conducted in line with established protocol and using the Electronic Evaluation Tool (EET), 205 applicants emerged successful while the remaining 33 applicants did not meet the minimum requirements and thus attained fail status,” said Derefaka. He further stated: “These stages are being followed by the Federal Government to ensure due process and efficiency in all necessary aspect of the gas commercialization drive of the Ministry of Petroleum Resources.”

Like we noted before now, the NGFCP initiative is obviously a very worthy venture that should be encouraged by all and sundry in and outside the oil and gas industry, and there is need for relevant Federal Government authorities as well, to see that it becomes a reality. We also admonish that President Buhari and the relevant Authorities in the Federal Ministry of Petroleum Resources, should be encouraged by all stakeholders in the oil and gas industry to ensure that the Government’s ongoing Gas Flare Commercialization programme, which will liberalize the development of the nation’s gas sector and greatly improve the supply of power, actually becomes a “reality”.

We reiterate that Gas flaring not only wastes valuable energy, which can be used to transform the nation’s electricity problems, but it also has significant detrimental effects on the environment and the overall economy. This is the more reason the NGFCP initiative must succeed by all means. And we are very keen in following every of its progress in the near and far future.

Zik Gbemre.

National Coordinator

Niger Delta Peace Coalition (NDPC)