Nigerian National Petroleum Company Limited (NNPCL) has revealed plans to invest $550 million in a new gas processing facility in Rivers State to enhance export and domestic supply capacities. Reuters reports that a source familiar with the agreement confirmed that the investment will cover the development of a gas processing plant and an associated pipeline.
NNPCL and its partners are expected to make an official statement soon.
Reuters also noted that the facility located at the Ubeta onshore gas field will be jointly owned by Total and NNPCL and supply gas to the Nigeria Liquefied Natural Gas (NLNG) Limited plant. Upon completion, the plant is projected to produce 350 million standard cubic feet of gas per day and 10,000 barrels per day of associated liquids.
Nigeria possesses Africa’s largest natural gas reserves, exceeding 200 trillion cubic feet, but it often flares gas from its oil fields due to inadequate processing infrastructure and capital constraints.
Tackling gas flaring in Africa
Regarding tackling gas flaring in Africa, in May 2024, the African Petroleum Producers Organisation (APPO), in collaboration with the Petroleum Commission of Ghana, hosted an event to end gas flaring on the continent.
The event attendees agreed to implement stricter regulations, adopt best practices, and invest in technologies that capture and utilize associated gas. They also decided that gas flaring is prohibited for new projects, and facilities to utilize produced gas are mandated. Existing operations are also being monitored to eliminate routine flaring and emissions.
During the event, a call was made to establish robust monitoring and reporting mechanisms. Participants agreed that setting measurable targets, regular reporting, and third-party verification are necessary to track progress in reducing gas flaring and emissions.
The development of necessary infrastructure for effective gas utilization was deemed essential. Participants agreed that host governments should lead these efforts to minimize the practice and maximize economic benefits.