Total E&P Nigeria targets zero flaring, increased monetisation in gas subsector

One of Nigeria’s leading firm in the oil and gas sector, Total E&P Nigeria has pledged to sustain 100% gas flare out on all its operation in the country in a bid to lend support to the community on global warming.

The firm also revealed plans to ensure that all gas is monetised and utilised for the domestic market.

Speaking during the management session of the 37th Nigerian Association of Petroleum Explorationists, NAPE annual international conference and exhibition held in Lagos, the Managing Director, Total E&P Nigeria, Mike Sangster, explained that the company came up with a strategy to vigorously expand its presence in the gas sub-sector and has since, achieved tremendously in gas flare out.

“Total shares the concern and commitment of the global community on global warming, which is why Total came up with a strategy to vigorously expand its presence in the gas sub-sector.

We believe that natural gas is a growing market of both now and the future. We also already know that natural gas is twice as clean as coal for generating power, so we’re going after it for both environmental and business reasons.

“We are proud to say that we achieved 100% gas flare out on our Ofon Field in December, 2014 and the gas is currently monetised. In 2015, Total E&P Nigeria received the World Bank – Global Gas Flare Reduction Partnership (GGFR) Excellence Award.

This is a major milestone in line with the aspiration of Government, which is why our Ofon flare out achievement has been proposed as part of Nigeria’s Nationally Determined Contribution (NDC) to greenhouse gas emissions reduction. We are committed to achieving zero flaring in all our operations.”

Mr Sangster stated that the joint venture with the NNPC for the supply of gas to the Alaoji Power Plant in Abia State has helped in achieving the federal governments gas supply drive to the domestic market.

“You will also recall that in 2016, the NNPC -Total E&P Nigeria Limited joint venture commenced the supply of gas to the Alaoji Power Plant in Abia State.

“This became possible after the completion and start-up of the Obite-Ubeta-Rumuji (OUR) Pipeline and the Northern Option Pipeline projects by the NNPC/TEPNG JV in August 2016.

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The completion of these pipelines is an important milestone in the activities of Total in Nigeria. The NOPL is unique and strategic in meeting the Federal Government’s objectives of gas supply to the domestic market.”

Achieved such fear cannot come without challenges, the Total boss identified key issues he expects, will be addressed by the panelists in order for the sector to achieve significant monetisation and strategies to effective service the markets.

“We are aware that challenges remain in the areas of infrastructure; legal and regulatory framework; commercial framework (pricing policy) via the National Domestic Gas Supply & Pricing Regulations of 2008 vis-à-vis the new National Gas Policy approved by the Federal Executive Council (FEC) in 2017.

“There is also the question of funding mechanisms for the sector because, as we all know, investments in PSC oil projects are recovered from oil but no mechanism is currently agreed for cost recovery or profit sharing for investments in gas projects.

“Total is committed to the Nigerian Gas Master Plan, reducing flaring and monetising gas,” he added.