In a bid to tackle Nigeria’s longstanding issue of gas flaring, NIGUS International, a Nigerian energy company, has sealed a monumental $1 billion deal with Beijing Zhogmin Xinjunlong New Energy Technology Company Ltd.
The signing ceremony, directed by President Bola Tinubu, took place in Abuja on Friday,
HRH Malik Ado Ibrahim, CEO and Chairman of NIGUS, emphasized the pivotal role of this collaboration in harnessing cutting-edge technology to convert flared gas into commercial products. The innovative technology company aims to produce Gas-to-Liquid (GTL) products like synthetic diesel, Liquefied Natural Gas (LNG) for export, and Liquefied Petroleum Gas (cooking gas), ushering in significant advancements in the energy sector.
Addressing the collaboration, Ibrahim highlighted its focus on ushering in a clean climate economy in Nigeria while effectively utilizing gas resources currently being wasted through flaring. He emphasized the project’s contribution to creating value and lowering energy costs while reducing the country’s carbon footprint significantly.
Yung Ruming, CEO of Beijing Zhogmin Xinjunlong New Energy Technology Company Ltd., expressed readiness to kickstart the partnership, noting their technical expertise and equipment readiness.
Ruming noted that the project has the potential to strengthen the enduring relationship between Nigeria and China, promising substantial benefits for the Nigerian populace.
Gas flaring remains a critical issue in Nigeria’s energy landscape. In the first half of 2023, the country witnessed a surge in gas flaring, with oil and gas companies releasing 138.7 million metric standard cubic feet of gas, a 10% increase from the previous year.
This leads to substantial carbon dioxide emissions and incurred significant financial losses, necessitating the urgency of initiatives like the NIGUS-China collaboration.
The joint venture signifies a step towards fulfilling President Tinubu’s vision of utilizing flared gas effectively. By leveraging advanced technology, the project aims to convert wasted gas into valuable resources, fostering economic growth and sustainability.
The move also aligns with Nigeria’s aspirations for a greener and more prosperous energy future, while fortifying international partnerships for mutual benefit.