Gas to power project - overview

To the average Niger Deltan gas flaring is the most visible and insidious representation of the oil industry. Nigeria has about 180 trillion cubic feet of proven gas reserves (the seventh largest in the world). It currently exports about 3 billion
cubic ft. per day and flares about 2.5 billion cubic ft. per day (equal to 30% of the entire EU’s annual gas consumption) due to lack of infrastructure to make use of the gas more productively. Only about 0.5 billion cubic feet per day is supplied to the
domestic power sector while approximately 70% of the population has no access to electricity or modern energy services. Harnessing gas from the flares to meet local energy needs is critical to development in the Niger Delta.

The ‘gas to power’ demonstration project will utilise associated gas, either from a flow station or an oil well and, through a micro turbine, generate electricity for domestic and small business consumption. The project will deploy a 0.5 MW gas
turbine to produce and distribute electricity to about 3,000 households and 500 small businesses as well as 5 health centres and 6 schools. The project design has a strong community ownership element in-built: the entire assets and operations are
to be managed and maintained by a community-based utility company that will be owned by the community. The siting of the project will be preceded by a technical feasibility and economic iability assessment since the project aims at full cost recovery. In addition to electricity generation, the project has scope for the
incorporation of other components such as ‘gas to liquid’ and ‘gas to fertiliser’. These add-ons will operate on a fully commercial basis.