Nigeria again extends deadline for gas flaring plan

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The Nigerian Gas Flare Commercialization Program (NGFCP) aims at attracting the support of the United States.

Consequently, the President of the United States of America has made the deadline for the submission of 15 March, President Muhammadu Buhari's President of the United States.

Six months later, six months later. Successful bidders will be awarded a contract with the federal government.

This is the second time the deadline has been delayed – the initial date was in December last year.

Controlling a gas supply is more often than not possible in the Niger Delta, taking advantage of "clustering opportunities".

NGFCP manager Justice Derefaka said $ 3.5 trillion of the program, "curbing pollution, easing the impact of climate change on communities, offering clean energy households and unlocking potential annual production of 600,000 tons of liquid petroleum gas".

Industry loyalty to engage in full-blooded involvement with the Nigerian gas initiative is symptomatic of a much deeper malaise afflicted by the Nigeria Gas Association chairman Dada Thomas told Upstream.

The Ministry of Power has just announced plans to generate revenue to generate generating companies (gencos) to help cushion them from the distributors of which do not, or can not, pay on time.

Power Ministry permanent secretary Louis Edozien also suggested that they should chase their own customers, selling power directly to users instead of waiting for the government.

"This allows market forces to come into play, and I believe they will be more likely to reach their goals and reach more mutually agreeable commercial terms." "Edozien said .

Thomas said it is the distribution companies that "own the last mile of the system and they are very unhappy about the new policy.

"Neither the gencos nor the small primary producers can accept," Thomas said.

The 1992 Associated Gas Framework Agreement (AGFA) provided substantial fiscal incentives for majors but "those clamoring for AGFA to be entrenched back into law under the delayed Petroleum Industry & Governance Bill may still be able to invest," he said.

However, the premature removal of the income tax credit would have been intended to kick-start gas investment would directly affect the smaller operators, depending on their business model.

"Those without the cushion of oil or condensate production will find it," Thomas said.

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