29 September 2017, Sweetcrude, Lagos — The gas utilisation project at the Ovade-Ogharafe oil field in Delta state has been successfully registered under the United Nations Clean Development Mechanism, CDM of the Kyoto Protocol.
This is in furtherance of Nigeria’s quest to ensure effective gas utilisation.
The project is designed to reduce greenhouse gas emission by more than two million tons of carbon dioxide annually.
The CDM allows for greenhouse gas emission reductions from projects in developing countries to be registered and monitored by the UN so that these reductions can be sold to developed countries that have emission limits.
Chief Festus Fadeyi, Chairman of Pan Ocean Oil Corporation, an indigenous Oil and Gas Company and operators of the project, stated that it is the largest CDM project in Africa and when at full capacity will provide 135 million standard cubic feet per day for electricity.
He said that this gas which otherwise would have been flared will be sold to developed countries to generate revenue for the country.
“The CDM registration has taken more than four years of efforts that were led by Carbon Limits of Norway. The credits will be sold to NUON, the Dutch state utility so that the carbon emissions reductions that occur in Nigeria will help the Netherlands meet its obligation under the Kyoto Protocol,” he said.
Chief Fadeyi explained that the project has important local environmental benefits such as reduced emissions of dangerous gases like Nitrogen Oxides, NOx and Volatile Organic Compounds, VOCs. He noted that this will improve the working conditions of the employees and the living standards of the nearby community.
The project which is being run in conjunction with the Nigerian National Petroleum Corporation, NNPC has demonstrated that CDM can help achieve improved economics and financing for gas flare reductions.