COP28: Nigeria’s Gas Flare Monetisation Targets 50% Carbon Emission Reduction – NUPRC

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has revealed plans to reduce Nigeria’s Carbon emission by as much as seven million tonnes of CO2 emission per year with the implementation of the Nigeria Gas Flare Commercialisation Programme (NGFCP).

The commission also unveiled the Regulatory Framework for Energy Transition, Decarbonisation and Carbon Monetisation  for Upstream Operations in Nigeria at the ongoing United Nations Climate Change Conference 2023 (COP28) in Dubai, United Arab Emirates.

The NUPRC commission chief executive (CCE), Gbenga Komolafe made this known while delivering his keynote address at a roundtable discussion themed “Driving Sustainable Upstream Operations to Achieve Just and Equitable Energy Transition.’’

During the ensuing discussion, Claire Wang, Office of the U.S Special Presidential Envoy on Climate Change, Martina Otto, Head of Climate & Clean Air Coalition, United Nations Environment Programme, Jonathan Banks, Global Director, Clean Air Task Force, and Funmi Ogbue, Managing Director, ZIGMA Oil and Gas exchanged ideas on how Nigeria can attain climate neutrality through energy transition and the implementation of decarbonisation measures.

The NGFCP projects when fully executed will mop up 50 per cent of Nigeria’s flares accounting for an equivalent of six to seven million tonnes of CO2 emission per year.

Data from the Nigerian Gas Flare Tracker indicates that  oil and gas producers in the country emitted about 12 million tonnes of CO2 into the atmosphere in 2022 though gas flaring, contributing to global warming

The data also showed that useful natural gas valued at $790 million was burned by the Nigerian oil and gas industry, equivalent to fines at the value of $450 million, many of which were not collected.

In addition, 22.5 Thousand GigaWatt hours of potential power generation went to waste equivalent to the annual electricity use of 511 million Nigerian citizens.

The CCE  said the Commission is championing the decarbonisation of upstream operations to sustain investments for energy security and economic development for the benefit of Nigerians in line with national aspirations and consistent with the UN SDGs.

Komolafe stated that the Framework was hinged on seven pillars which are; Natural Gas Shift, zero routine gas flaring & methane abatement, carbon market development, technology and innovation, upstream operations efficiency, incentive mechanism, collaboration and risk management

“I call on all stakeholders, government agencies, operators, international development partners and multilateral agencies to join us as we progress the steady implementation of the Framework within the coming months, which will be underpinned by applicable Directives, Guidelines, and Regulations”, declared the Upstream Regulator Chief.

“Interestingly, the implementation of the Regulatory Framework has already commenced on the heels of the introduction of the Gas Flare, Venting & Methane, Prevention of Waste  and Pollution Regulations 2023 which provides the renewed legislative basis to take firm actions on gas flaring, venting and fugitive emissions”.

Similarly, the implementation of the 2022 Guidelines for Management of Fugitive Methane and Greenhouse Gases Emissions in the Upstream Oil and Gas Operations in Nigeria, which was launched at COP27, is achieving commendable outcomes.

Furthermore, Komolafe highlighted the success of the ongoing execution of the Nigeria Gas Flare Commercialisation Programme (NGFCP) as a major climate action initiative for Nigeria in the nation’s energy transition pathway. The NGFCP projects when fully executed will mop up 50 per cent of Nigeria’s flares accounting for an equivalent of six to seven million tonnes of CO2 emission per year, in addition to significant socio-economic impacts.

While acknowledging the considerable support of international development  partners on the NGFCP, the NUPRC Boss seized the opportunity to call for enhanced assistance from climate action stakeholders in technical areas, project financing/funding, carbon credit earning framework, and capacity building.