NCD Fund For Support Of LPG Penetration, Power – Wabote
The Executive Secretary, Nigerian Content Development Management Board, NCDMB, Engr. Simbi Wabote has stated that the Board’s investment policy was to devote substantial portion of the Nigerian Content Development Fund to support project promoters in the areas of LPG penetration and power.
Engr. Wabote disclosed this during his keynote address at the Nigerian Gas Flare Commercialization Program (NGCFP) Qualified Applicants Conference at PTDF, Nigeria Auditorium Abuja.
While delivering his speech on the topic , ” Local Content as an Enabler for Human Capital and Economic Development: Potential Constraints and Opportunities for Investors and Qualified Applicants, the ES, NCDMB, who stated that data was key in maximasing potentials in gas flaring explained that data from the Ministry of Petroleum Resources, revealed that if the 700MMsc/day of flared gas was properly harnessed, Nigeria can produce 600,000 MT of LPG per year and generate 2,500MW of power from new and existing IPPs to power its economy.
In his goodwill message to the successful applicants of NGCFP, Wabote said , “I congratulate you all in getting to this stage. I understand that only 25% of those that registered their interest in the program got to this stage. I implore you pat yourself on the back even as you prepare for the next stage of the program.
“According to data from the Ministry of Petroleum Resources, if the 700MMsc/day of flared gas is properly harnessed, Nigeria can produce 600,000 MT of LPG per year and generate 2,500MW of power from new and existing IPPs to power its economy.
He added that, “Our Investment Policy, as approved by our Governing Council, devotes substantial portion of the Nigerian Content Development Fund to support project promoters in the areas of LPG penetration and power. –
“The Board is interested in gas monetisation value-chain with on-going discussions with investors in the establishment of LPG gas cylinder manufacturing plants and LPG storage terminals. You are welcome to discuss with us once you get the permits.” He said.
Calling on the participants to take technical safety crucial in their activities of gas flaring, the Local Content expert noted that , ” We plan to establish a desk within the Board to support the Flares Commercialisation Program so that bidders enquiries and needs are met promptly as we progress into the crucial stage of the program.
“Technical Safety is paramount as you endeavour to take over the flare site of a producing asset. Most operators will insist on top-notch technical assurance to show that you have the right systems in place to take over the flared gas from their facility.
“Get a copy of the NOGICD Act and be familiar with the key provisions. If not sure, contact the Board for clarification rather than getting the wrong interpretation from legal luminaries.
“Complete your end-to-end thinking before submitting your proposal. Note that the demand centres for the outputs from the flares utilisation projects are usually at a considerable distance from the flare sites.
“Be very creative with structuring your source of funding; it is most unlikely that you will get your funding from a single source.
“Data is king! Get the right resource to analyse and interpret the data set for your field/flare site of interest. “He added.
Meanwhile, some studies displayed that gas to power and LPG extraction were the most economic means of flare gas utilisation.