Nigeria’s state oil firm NNPC and private operator Heirs Energies announced on Wednesday that they have signed flare‑gas commercialization agreements with five investors. These flare-gas deals aim to capture and monetize gas that would otherwise be wasted through flaring. The flare-gas deals in Nigeria are a pivotal move in capturing wasted energy.
The agreements, part of a broader movement toward cleaner energy practices, cover about 18 million standard cubic feet per day (MMscf/d) of associated gas at the oil block OML 17. These deals are significant for Nigeria as the block is operated by Heirs Energies. The impact on flare-gas deals in Nigeria is set to be transformative.
Turning Waste Gas into Value
Under the flare-gas deals Nigeria has, gas previously burned off as waste will now be redirected for productive use. This includes power generation, domestic gas supply, and possibly liquefied natural gas (LNG) export. Heirs Energies CEO said the move “converts waste into value.” It strengthens domestic energy supply while supporting responsible operations on OML 17.
Aligning with Nigeria’s Gas‑Centric Strategy
The flare‑gas deals are aligned with Nigeria’s push toward a gas‑led energy transition, leveraging the country’s large proven gas reserves. This effort to pursue flare-gas deals aims to meet domestic demand, reduce greenhouse gas emissions, and support industrial growth.
The new agreements come at a critical time. Data show that in 2024, gas flaring in Nigeria rose by about 12%. This highlights the challenge ahead for regulators and operators. They are seeking to pivot toward cleaner energy practices. While the flare‑gas deals mark a positive step, analysts caution that infrastructure gaps, power‑market payment risks, and financing constraints may slow progress. These constraints have intensified especially following divestments by international oil companies and flare-gas deals in Nigeria will be crucial to addressing them.
Still, Nigeria’s renewed gas flare commercialization program, bolstered by these agreements, offers a model. It focuses on converting stranded gas into usable energy. This supports climate goals and deepens domestic energy security.
Opportunities and Challenges Ahead
While the flare‑gas deals mark a positive step, analysts caution that infrastructure gaps, power‑market payment risks, and financing constraints especially following divestments by international oil companies may slow progress.
Still, Nigeria’s renewed gas flare commercialization programme bolstered by these agreements offers a model for converting stranded gas into usable energy, supporting climate goals, and deepening domestic energy security. Advancements in flare-gas deals in Nigeria are expected to play a pivotal role in achieving these goals.
