NIGUS International, a Nigerian energy company, has sealed a groundbreaking $1 billion agreement with Beijing Zhogmin Xinjunlong New Energy Technology Company Ltd., a prominent Chinese firm.
The deal, authorized by President Bola Tinubu’s national directive, aims to revolutionize the utilization of flared gas through cutting-edge technology.
The pact, formalized on Friday in Abuja, emphasize NIGUS International’s commitment to integrating advanced technology to convert flared gas into commercially viable products. HRH Malik Ado Ibrahim, the CEO and Chairman of NIGUS, highlighted the primary focus on generating Gas-to-Liquid (GTL) products, including synthetic diesel, Liquefied Natural Gas (LNG) for export, and Liquefied Petroleum Gas (cooking gas), among other advancements.
Ibrahim emphasized the joint venture’s potential to contribute to a cleaner climate economy in Nigeria, addressing the issue of excessive gas flaring, which currently stands at a staggering 90% of the country’s production. He reiterated that the collaboration with China aims to bring modern, state-of-the-art technology to create wealth, achieve carbon neutrality, and generate lower-cost energy.
“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 imbed the technology where it is needed rather than adding infrastructural cost,” Ibrahim stated, aligning the project with President Tinubu’s vision of effectively utilizing flared gas.
Yung Ruming, the CEO of Beijing Zhogmin Xinjunlong New Energy Technology Company Ltd., expressed the company’s readiness for the partnership, emphasizing the mobilization of their technical team and equipment to bring the project to fruition. Ruming expressed gratitude to the Federal Government for entrusting the company with this opportunity and highlighted the longstanding positive relationship between Nigeria and China.
Turning attention to the gas flaring crisis in Nigeria, recent statistics reveal a concerning increase. In the first half of 2023, oil and gas companies flared 138.7 million metric standard cubic feet of gas, a 10% rise from the previous year. This led to the emission of 7.4 million tonnes of carbon dioxide, valued at a rate of US$485.3 million. The economic cost, when converted, amounted to a loss equivalent to N373 billion.
Comparatively, during the first half of 2022, 6.7 million tonnes of CO2 were emitted, incurring a cost of US$441.2 million, resulting in a loss equivalent to N338 billion. The joint venture between NIGUS International and Beijing Zhogmin Xinjunlong New Energy Technology Company Ltd. is poised to play a crucial role in reversing this trend and ushering in a new era of sustainable energy practices in Nigeria.
