Both projects, Egbaoma flare gas recovery project (implemented by the Platform Petroleum/Newcross JV) and the Ebendo flare gas recovery project (implemented by Xenergi Oilfield Services Ltd.) are located in the Niger Delta, Nigeria.
The projects bring important sustainable development benefits to a region which suffers from instability and under-development. Combined, the two projects will contribute approximately 600 thousand tons of CO2e in annual emission reductions. The gas capture represents a 5% reduction in current gas flare level and as such is a notable contribution to Nigeria’s efforts to eliminate routine gas flaring by 2030.
Both projects where initially developed under the Clean Development Mechanism (CDM) of the Kyoto Protocol. They were registered under the CDM in 2010 and 2012 respectively, but the project development work was stopped when the prospects for carbon co-financing disappeared following the carbon credit price collapse in 2012-2013. The project development work resumed with the launch of the offset mechanism under the Fuel Quality Directive (FQD) of the European Union. This offset mechanism moved the projects from being commercially unattractive to becoming financially viable.
The Egbaoma flare gas recovery project was commissioned in early 2021 and is currently bringing some 18 million standard cubic feet per day (mmscfd) to markets for productive use. As gas infrastructure in the Niger Delta has expanded, a new gas transmission gas pipeline closer to the field is now in place, which serves as the connection point for the gas. The principal use of the gas is for power generation and as such it has important economic, social, and environmental benefits.
The Ebendo flare gas recovery project is at an advanced stage of commissioning, but a substantial volume of gas is still being flared. There have been technical and financial challenges which have delayed the project completion. Getting to the stage of stable operational conditions is now helped by near-term prospects of carbon co-financing.
The project has approximately the same size and design features as the Egbaoma project and hence it has similar climate mitigation and sustainable development impacts.