Nigeria’s Heirs Energies and the Nigerian National Petroleum Company Limited (NNPC Ltd.) said on Wednesday they had signed agreements with five investors to capture and monetise gas that would otherwise be wasted through flaring, where the fuel is burned in the open.
Nigeria holds Africa’s largest proven gas reserves and is betting on gas to drive industrial growth and cut emissions. Its Decade of Gas policy aims to boost domestic supply, reduce flaring and expand LNG exports. But recent World Bank data show flaring rose 12% in 2024, underscoring the challenge.
The deals, part of a broader effort by Nigerian operators to reduce greenhouse gas emissions and boost domestic supply, cover about 18 million standard cubic feet per day (MMscf/d) of gas across Oil Mining Lease 17, operated by Heirs Energies.
Last year, Nigeria flared gas — where it is burned off rather than captured or used to generate power — worth $1.05 billion, emitting an estimated 16 million tonnes of CO2, government data shows, despite pledges to end routine flaring.
“Gas sits at the heart of Nigeria’s development journey,” said Heirs Energies CEO Osa Igiehon, adding: “We are converting waste into value, strengthening domestic energy supply and supporting responsible operations across OML 17”.
Analysts cite infrastructure gaps, payment risks in the power market and financing constraints after divestments by international oil companies as hurdles to progress in Nigeria and although regulators imposed $602 million in fines for flaring last year, enforcement remains weak.
Nigeria’s government has re-launched its gas flare commercialisation programme and set decarbonisation targets for new leases, but execution has been uneven.
Earlier this week, Renaissance Africa Energy, which bought Shell’s onshore assets in Nigeria, launched a flare-reduction project to gather associated gas from Niger Delta oilfields and route it into pipelines to feed the country’s domestic network and Nigeria LNG’s Bonny plant.
Renaissance said the project will add around 100 MMscf/d. (Reuters)
