A Nigerian agency responsible for monetising flared gas, which accounts for 22 million tonnes per annum of carbon emissions, is preparing the gas sector for a major shake-up.
Justice Derefaka, general manager of the Nigerian Gas Flare Commercialisation Programme (NGFCP), told Upstream that he expected flare gas monetisation schemes to lead to major changes in the gas price.
He cited market analysis currently being carried out for NGFCP by the International Finance Corporation (IFC) as suggesting that profitable monetisation of flares can occur only if “a realistic pricing range for flared gas to market (FG2M) is adopted to incentivise off-takers to switch”.
