NIGUS International, a Nigerian energy company, has secured a $1 billion deal with Beijing Zhogmin Xinjunlong New Energy Technology Company Ltd., a Chinese firm, to fund and propel initiatives addressing gas flaring issues in Nigeria.
The signing of this pact took place on Friday January 5th 2024 in Abuja by the national directive of President Bola Tinubu, as reported by the News Agency of Nigeria (NAN).
During the agreement signing, HRH Malik Ado Ibrahim, the Chief Executive Officer and Chairman of NIGUS, emphasised that the collaboration with the Chinese company is focused on integrating its cutting-edge technology to convert flared gas for commercial use.
This innovative technology is poised to generate gas-to-liquid (GTL) products such as synthetic diesel to enhance the energy mix, liquefied natural gas (LNG) for export, and liquefied petroleum gas (cooking gas), among other advancements.
He said,
- “The joint venture is about NIGUS, as a renewable energy company, joining forces with the technology that allows us to bring a clean climate economy to Nigeria and create value from what we are wasting at the moment to generate pricing energy.”
- “We seem not to be contributing to the carbon footprint; we flare a lot of our gas, and 90% of what we produce in Nigeria is being flared, not utilising the gas.”
- “We are bringing to play a very modern, state-of-the-art technology by joining forces with China to create wealth and carbon neutrality and then generate lower-priced energy.”
- “The project is to demonstrate the president’s wish to utilise flared gas; this technology will put his wishes into action.”
- “The GTL will allow us to turn the gas into a liquid to create LNG; the paradigm shift is that we will be able to embed the technology where it is needed rather than adding infrastructural costs.”
The Chief Executive Officer of Beijing Zhogmin Xinjunlong New Energy Technology Company Ltd., Yung Ruming, stated the company’s preparedness for the partnership, saying that their technical team and equipment would be mobilised to bring the project to fruition.
Expressing gratitude to the Federal Government for entrusting the company with this opportunity, Ruming highlighted the longstanding positive relationship between Nigeria and China over the years. He emphasised that the project would bring significant benefits to the Nigerian populace.
In the first half of 2023, oil and gas companies in the country flared 138.7 million metric standard cubic feet of gas.
This represents approximately a 10% increase from the 126.1 million standard cubic feet (SCF) of gas flared in the first half of 2022.
This led to the emission of 7.4 million metric tonnes of carbon dioxide (CO2), valued at a rate of US$485.3 million. When converted, this amounts to a loss equivalent to N373 billion using the August 2023 rate.
During the first half of 2022, entities emitted 6.7 million metric tonnes of CO2, leading to a cost of US$441.2 million and causing a loss amounting to N338 billion.
